3 Gym One manufactures two types of treadmills: Advanced and Basic. During Year 2, the...

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3 Gym One manufactures two types of treadmills: Advanced and Basic. During Year 2, the company incurred $357,000 of inspection cost. Gym One recently established an activity-based costing system that classified its activities into four categories. Categories and cost drivers are in table below. Advanced Basic Total Direct Labor Number of Batches 24 4 28 Hours 15,500 5,500 21,000 Number of Inspectors 5 2 7 What is the allocation rate assuming costs are driven by product level activities?
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Gym One manufactures two types of treadmilts: Advanced and Basic. During Year 2, the compony incurred $357,000 of inspection cost. Gym One recently established an activity based costing system that classified its activities into four categories, Cotegories and cost drivers are in table below What is the allocation rate assuming costs are diven by product level activities

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