Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Calculate Miller's activity rate
Transcribed Image Text:Miller Manufacturing has implemented an ABC (Activity-Based Costing) system
and has identified the following information about its cost pools and cost drivers:
Activity Cost Pools Costs
Order Processing
$62,400
Equipment Setup $24,000
Cost Drivers
Quantity
Number of orders 520
Number of setups 800
Required:
Calculate Miller's activity rate for each cost pool.
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