Tandem Company manufactures two products (D and F). The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers:
|
Product
|
Number of Setups
|
Machine Hours
|
Packing Orders
|
|
D
|
10
|
500
|
75
|
|
F
|
10
|
2,000
|
175
|
|
|
|
|
|
|
Cost per pool
|
$11,000
|
$60,000
|
$18,750
|
What is the application rate per setup using activity-based costing?