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The 195 Factory Produces Replacement Parts and Assemblies for Vintage

Question 37

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The 195 Factory produces replacement parts and assemblies for vintage Cessna aircraft. The company is considering replacing its current costing system with an activity-based approach. It has identified three activities: computer-aided design; fabrication; and assembly and finishing. Data regarding these activities has been collected in the table below.
The 195 Factory produces replacement parts and assemblies for vintage Cessna aircraft. The company is considering replacing its current costing system with an activity-based approach. It has identified three activities: computer-aided design; fabrication; and assembly and finishing. Data regarding these activities has been collected in the table below.   - What is the activity cost rate for the computer-aided design activity? A)  $500 per computer hour B)  $300 per machine hour C)  $250 per labor hour D)  $1,000 per computer hour
- What is the activity cost rate for the computer-aided design activity?


A) $500 per computer hour
B) $300 per machine hour
C) $250 per labor hour
D) $1,000 per computer hour

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