Angel Corporation Uses Activity-Based Costing to Determine Product Costs for External

question 43

Multiple Choice

Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:
$\begin{array}{ll} & \text { Estimated } \\ \text { Activity Cost Pools (and Activit Measures } &\text {overheadCost}\\\\ \text { Machine related (machine-hours) } & £ 81,600\\ \text { Batch setup (setups) . } &£ 387,000\\ \text { General factory (direct labour-hours) . } &£ 274,800 \\\end{array}$

$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $\quad$$\text { Expected Activity }$
$\begin{array}{lrr}\text { Activity Cost Pools }& \text { Total } & \text {Product X}& \text { Product Y}\\ \text { Machine related. } &8,000&3,000&5,000\\ \text { Batch setup. } &10,000&2,000&8,000\\ \text { General factory. } &12,000&7,000&5,000\\\end{array}$

The activity rate for the batch setup activity cost pool is closest to:

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Definitions:

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