Question

Moyle Corporation has provided the following data from its activity-based costing accounting system: Activity Cost Pools Estimated Overhead Cost Expected Activity Designing products $ 396,900 2,450 product design hours Setting up batches $ 8,580 390 batch set-ups Assembling products $ 115,520 7,220 assembly hours The activity rate for the Designing Products activity cost pool is closest to:

Answer 1

Answer:

the activity rate is $162

Explanation:

The computation of the activity rate is shown below:

= Estimated overhead cost ÷ Estimated activity

= $396,900 ÷ 2,450

= $162

Hence, the activity rate is $162

We simply applied the above formula so that the accurate activity rate could come