Halsted Corp. has identified three cost pools in its manufacturing process: equi

Question

Halsted Corp. has identified three cost pools in its manufacturing process: equipment maintenance, setups, and quality control. Total cost assigned to the three pools is $157,940, $83,838, and $88,100, respectively. Cost driver estimates for the pools are 10,600 machine hours, 157 setups, and 454 quality inspections, respectively. Calculate the activity rate for each of Halsted's cost pools. (Round your answers to 2 decimal places.) decimal places required Maintenance Setup Quality Control per Machine Hour per Setup per Inspection

Explanation / Answer

Calculate activity rate :

Maintenance = 157940/10600 = 14.90 per machine hour

Setup = 83838/157 = 534 per setup

Quality control = 88100/454 = 194.05 per inspection

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