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Social Science Clinic => Accounting => Topic started by: rissygurl1124 on Feb 5, 2023

Title: A&W Manufacturing uses an activity-based costing system for its cutting department. The activity ...
Post by: rissygurl1124 on Feb 5, 2023

A&W Manufacturing uses an activity-based costing system for its cutting department. The activity cost totals $148,000. The number of cuts is the cost driver. The cutting department processed a total of 9,000 batches with an average cuts per batch of 6 and total cuts of 46,250. What is the activity rate for the cutting department?
◦ $3.20 per cut
◦ $1,500 per cut
◦ $247 per cut
◦ $16.45 per batch

Title: A&W Manufacturing uses an activity-based costing system for its cutting department. The activity ...
Post by: dsd1212 on Feb 5, 2023

$3.20 per cut

$148,000 ÷ 46,250 cuts = $3.20 per cut