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Maxx Inc. has provided the following data from its activity-based costing system: Activity Cost Pools Total Cost Total Activity Designing products $376,200 6,340 product design hours Setting up batches $52,678 7366 batch set-ups Assembling products $25,122 4,018 assembly hours The activity rate for the “designing products” activity cost pool is:
Expert Answer
The activity rate for the “designing products” activity cost pool is:
=($376200/6340 hours)
which is equal to
=$59.34(Approx).
