Flip to match each activity rate
Exercise and reference answers
- Matching pairs
- A
- Setups
- B
- $50 per setup
- A
- Moves
- B
- $15 per move
- A
- Inspections
- B
- $25 per inspection
- A
- Clean-ups
- B
- $10 per cleanup
- A
- Cutting
- B
- $30 per machine hr
- A
- Assembly
- B
- $15 per labor hour
- Instructions
- Flip two cards to pair an activity with the rate charged each time it happens.
Explanation
_Source: Jonick, Principles of Managerial Accounting, section 4.4 Activity-Based Costing for a Manufacturing Business_