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Author Question: Canton Corp. manufactures two sizes of ceramic paperweights, regular and jumbo. The following ... (Read 97 times)

stephzh

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Canton 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$46,00094,000 orders
Machine maintenance$310,00020,000 maintenance hours
Setups$261,00045,000 setups
Inspections$132,37021,700 inspections
Total support costs$749,370



Expected direct costs amounts to $942,000 for the period. Support cost requirements of both products are substantially different from one another. Canton uses an ABC costing system.

The setups activity-cost driver rate is ________.
◦ $6.10 per setup
◦ $5.80 per setup
◦ $4.15 per setup
◦ $15.50 per setup


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Marked as best answer by stephzh on Mar 6, 2021

tashiedavis420

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stephzh

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Reply 2 on: Mar 6, 2021
Excellent


milbourne11

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

 

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