Question 1 hot yet nswered XYZ Co has an activity-based costing system with three activity cost pools-- Fixing, Cutting, and Other. In the first stage allocations, costs in the two overhead a counts, equipment depreciation and factory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Marked out of 2 Flag question Overhead costs: $79,600 Factory depreciation Indirect labor Distribution of Resource Consumption Across Activity Cost Pools: $5,000 Activity Cost Pools Fixing Cutting Other Equipment depreciation 0.30 0.50 0.20 Factory expense 0.50 0.30 0.20 Fixing costs are assigned to products using machine-hours (MHS) and Cutting costs assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Machine-hours (Fixing) Orders (Cutting) Product A 1,550 1,070 Product B 9,700 1,630 The activity rate for the Fixing activity cost pool under activity-based costing is closest to (Round your intermediate calculations to 2 decimal place) Select one:
a. $2.34 per MH b. $94.00 per MH c. $3.67 per MH d. none of the given answer e. $3.76 per MH