Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger

Exercise 11

Assume that the moving activity has an expected cost of $80,000. Expected direct labor hours are 20,000, and expected number of moves is 40,000. The best activity rate for moving is
A) $4 per move.
B) $1.33 per hour-move.
C) $4 per hour.
D) $2 per move.
E) None of these.