Asked by Julie David on May 31, 2024
Verified
The activity rate for the General Factory activity cost pool under activity-based costing is closest to:
A) $62.60 per MH
B) $33.61 per MH
C) $167.94 per MH
D) $87.22 per MH
General Factory
A term generally referring to the main production site where various goods are manufactured.
Activity-Based Costing
A method of accounting that recognizes and allocates expenses to overhead operations, before distributing those expenses to the products.
- Compute the cost rates for activities within distinctive cost pools using the activity-based costing approach.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
D
Explanation :
Activity rate = Estimated overhead cost ÷ Total expected activity
= $863,478 ÷ 9,900 MHs = $87.22 per MH
= $863,478 ÷ 9,900 MHs = $87.22 per MH
Learning Objectives
- Compute the cost rates for activities within distinctive cost pools using the activity-based costing approach.
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