Heated Tools Ltd. uses activity-based costing. It has identified three cost pools and their drivers as follows:
|
Purchasing |
Quality Control |
Dispatch |
|
|
Purchase Orders |
Stores issues |
Deliveries |
|
|
Cost pool Driver |
$60,000 |
$40,000 |
$30,000 |
|
Quantity |
12,000 |
4,000 |
2,000 |
What is the cost driver rate for quality control?
$10
$4
$15
$5