Hargrove Handbags uses an activity-based costing system. The cutting activity cost pool totals $148,000, and...

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Accounting

Hargrove Handbags uses an activity-based costing system. The cutting activity cost pool totals $148,000, and the number of cuts is the activity cost driver. The company completed a total of 46,250 cuts over 9,000 batches, with an average of 5 cuts per batch. Based on this information, what is the activity rate for Hargroves cutting activity cost pool?

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$3.20 per cut

$16.45 per batch

$247 per cut

$1,500 per cut

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