Mayan Potters manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies...

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Accounting

Mayan Potters manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their expectations for the planning period:
Cost Pool Overhead Costs Activity-cost driver
Materials handling $ 45,00090,000 orders
Machine maintenance $300,00015,000 maintenance hours
Setups $270,00045,000 setups
Inspections $105,00021,000 inspections
Total support costs $720,000
Production Estimates
Production units:
Regular =8,000,000 units
Jumbo =16,000,000 units
Machine-hours =200,000 mh
Labor-hours =400,000 dlh
Mayan Potters uses an ABC system and assigns overhead costs based on the overhead activity information provided above.
The inspections activity-cost driver rate is:
Question 2 options:
$0.50
$20.00
$5.00
$2.00
none of the above.

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