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A&W Manufacturing Uses an Activity-Based Costing System for Its Cutting

question 6

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A&W Manufacturing uses an activity-based costing system for its cutting department.The activity cost totals $148,000.The number of cuts is the cost driver.The cutting department processed a total of 9,000 batches with an average cuts per batch of 6 and total cuts of 46,250.What is the activity rate for the cutting department?

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Definitions:

Population Standard Deviation

A measure of the amount of variation or dispersion of a set of values in a population.

Sample Size

The number of observations or entities considered in a statistical sample.

Standard Error

A measure of the statistical accuracy of an estimate, calculated from the standard deviation of a series of estimates.

Population Standard Deviation

A measure of the dispersion or spread of a set of data points in a population.

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