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Canton Corp

Question 27

Multiple Choice

Canton Corp. manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their expectations for the planning period:
Canton Corp. manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their expectations for the planning period: 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. The setups activity-cost driver rate is ________. A) $6.10 per setup B) $5.80 per setup C) $4.15 per setup D) $15.50 per setup
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.
The setups activity-cost driver rate is ________.


A) $6.10 per setup
B) $5.80 per setup
C) $4.15 per setup
D) $15.50 per setup

Correct Answer:

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