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

question 55

Multiple Choice

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?

• A) $1,500 per cut
• B) $247 per cut
• C) $16.45 per batch
• D) $3.20 per cut

Understand how socialization is a lifelong process that extends beyond family into secondary institutions.

Understand the concept of consumer surplus and how it changes with price movements in the market.

Identify which producers will supply to the market at different price points based on their production costs.

Understand the concept of producer surplus and its variation with market price changes.

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