What is activity based overhead rate for the machine setups

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Reference no: EM13824323

Robot Toy Company manufactures two products, Techman and Mechman. Robot's estimated overhead costs for next year are

Machine set up cost pool: $200,000

Machining cost pool: $450,000

Inspecting cost pool: $150,000

Estimated use of cost drivers for next year is machine setups

Total: 1000 setups

Techman: 600 setups

Mechman: 400 setups

What is the activity based overhead rate for the machine setups?

a. 500 per machine setup

b. 333

c. 200

d. 100

Reference no: EM13824323

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