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Author Question: Canton's Corp. manufactures two sizes of ceramic paperweights, regular and jumbo. The following ... (Read 61 times)

bclement10

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Canton's Corp. manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their expectations for the planning period:

Cost PoolOverhead CostsActivity-cost driver
Materials handling$42,00096,000 orders
Machine maintenance$360,00016,000 maintenance hours
Setups$236,60045,500 setups
Inspections$135,78021,900 inspections
Total support costs$774,380



Expected direct costs amounts to $928,000 for the period. Support cost requirements of both products are substantially different from one another. Canton's uses an ABC costing system.

The inspections activity-cost driver rate is  ________.
◦ $0.44
◦ $5.70
◦ $6.20
◦ $13.08


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Marked as best answer by bclement10 on Mar 6, 2021

strudel15

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bclement10

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


chereeb

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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