What is the activity rate for the activity cost pool?
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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 $370,600 6,550 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:
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A step-by-step solution for the activity cost pool showing the computations is given.
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The activity rate for the "designing products" activity cost pool = Total cost / Total ...
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- BSc, California State Polytechnic University, Pomona
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