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Maxx Inc
Maxx Inc. has provided the following data from its activity-based costing system: Activity Cost Pools Total Cost Total Activity Designing products $370,800 6,590 product design hours Setting up batches $52,678 7366 batch set-ups Assembling products $25,122 4,018 assembly hours The activity rate for the "designing products" activity cost pool is:
Round to two decimal places.
Expert Solution
Computation of Activity rate for designing products:
Activity rate for designing products = Cost of designing products/ Product design hours
=$ 370,800/ 6,590
Activity rate for designing products = $56.27
So, The activity rate for " the designing products " activity cost pool is $56.27
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