?Refer to CASE 1 (Company A): What is the activity rate for the Inspection activity cost pool $12.20 a O $890.00 b O $6.00 .c O None of the amounts given d O

Extracted text: ?Refer to CASE 1 (Company A): What is the activity rate for the Inspection activity cost pool $12.20 a O $890.00 b O $6.00 .c O None of the amounts given d O


Extracted text: Activity Cost Pool Maintenance Materials Handling Setups Inspection Order processing Customer Support Annual Activity 10,000 Machine hours 30,000 Material moves 15,000 Setups 25,000 Quality inspections 25,000 Orders 500 Customers The company traces the costs of direct materials and direct labor to jobs (i.e. orders). Overhead costs (both manufacturing and non-manufacturing) are allocated to jobs using the activity-based costing system. These overhead costs are listed below: Indirect factory wages Other manufacturing overhead Selling and administrative expense $700,000 Total $250,000 $500,000 $1,450,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Maintenance Materials Handling Setups Inspection Order processing customer support Indirect factory wages other manufacturing overhead Sellign and administrative expense 25% 25% 10% 20% 10% 10% 30% 10% 40% 20% 0% 0% 0% 0% 0% 0% 40% 60%