Answer:
$3.2 per cut
Explanation:
Data provided in the question:
Total activity cost = $148,000
Number of batches processed = 9,000
Average cuts per batch = 6
Total cuts = 46,250
Now,
The activity rate is given as:
Activity Rate for the cutting department = [tex]\frac{\textup{Activity Cost Pool Total}}{\textup{Total Number of Cuts}}[/tex]
or
Activity Rate for the cutting department = [tex]\frac{\$148,000}{\textup{46,250}}[/tex]
or
Activity Rate for the cutting department = $3.2 per cut
