Author Question: A&W Manufacturing has implemented an activity-based costing system. For warehousing/ packaging, the ... (Read 36 times)

poopoo · **on:** Feb 5, 2023

Question 1

Place an "X" in the column that corresponds to the type of activity level referred to in the following hospital setting.

	Unit	Batch	Product	Customer	Organizational
Hospital admissions
Hospital administrator's salary
Cost of advertising new dialysis center
Cost of a dialysis machine
Physical therapy for stroke patient

Question 2

A&W Manufacturing has implemented an activity-based costing system. For warehousing/ packaging, the activity cost totals $140,400. The number of batches produced is the cost driver for this activity pool. A&W has the following information relating to its warehousing/packaging department:

Budgeted

Units Per

Number of

Production

Batch

Batches

Product A	1,500	5	300
Product B	300	3	100
Product C	250	5	50
Total			450

Required:

Calculate the activity cost rate per batch for the warehousing/packaging department.

bobbbbb · **Reply #1 on:** Feb 5, 2023

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