Andry Corporation uses activity based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity based costing system:
|
Activity Cost Pools (and Activity Measures) |
Estimated Overhead Cost |
||
|
Machine related (machine hours) |
$177,000 |
||
|
Batch setup (setups) |
$453,600 |
||
|
General factory (direct labor hours) |
$227,000 |
||
|
|
Expected Activity |
||
|
Activity Cost Pools |
Total |
Product X |
Product Y |
|
Machine related |
10,000 |
7,000 |
3,000 |
|
Batch setup |
7,000 |
5,000 |
2,000 |
|
General factory |
10,000 |
6,000 |
4,000 |
The activity rate for the batch setup activity cost pool is closest to:
A) $122.50
B) $226.80
C) $90.70
D) $64.80