What the setups activity-cost driver rate

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Question - Canton Corp. manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their expectations for the planning period:

Cost Pool Overhead Costs Activity-cost driver

Materials handling $46,000? 94,000 orders

Machine maintenance $310,000? 20,000 maintenance hours

Setups $261,000? 45,000 setups

Inspections $132,370? 21,700 inspections

Total support costs $749,370

??Production Estimates

Production units:

Regular = 8,000,000 units

Jumbo = 16,000,000 units

Machine-hours = 500,000 mh

Labor-hours = 1,000,000 dlh

Expected direct costs amounts to $942,000 for the period. Support cost requirements of both products are substantially different from one another. Canton uses an ABC costing system.

Required - What the setups activity-cost driver rate?

Reference no: EM133064405

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