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24 February, 01:58

Given the following information, determine the activity rate for setups. Activity Total Activity-Base Usage Budgeted Activity Cost Setups 10,000 $180,000 Inspections 24,000 $120,000 Assembly (dlh) 80,000 $400,000 a.$58.00 b.$18.00 c.$5.09 d.$0.75

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  1. 24 February, 03:34
    0
    Activity Rate for Setup = $18

    Explanation:

    Given

    Activity Total Activity-Base Usage Budgeted Activity Cost

    Setups 10,000 $180,000

    Inspections 24,000 $120,000

    Assembly (dlh) 80,000 $400,000

    Activity Rate is calculated by: Budget Activity Cost/Activity Base Usage

    Where Activity Base (for Setup) = 10,000

    Budget Activity Cost = $180,000

    So, Activity Rate for Setup = $180,000/10,000

    Activity Rate for Setup = $18

    Hence, the calculated activity Rate for setups is $18
  2. 24 February, 03:47
    0
    b.$18.00

    Explanation:

    The rate of activity can be estimated by using the total number of activity and the cost incurred. This is normally used to show the progress of the specific activity and it can either positive or negative. In this problem, the activity rate of setups is equivalent to $180000/10000 = $18. Therefore, the correct answer is option b.
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Home » Business » Given the following information, determine the activity rate for setups. Activity Total Activity-Base Usage Budgeted Activity Cost Setups 10,000 $180,000 Inspections 24,000 $120,000 Assembly (dlh) 80,000 $400,000 a.$58.00 b.$18.00 c.$5.09 d.$0.75
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