Asked by Jayden Williams on Jul 06, 2024
Verified
The activity rate for the General Factory activity cost pool under activity-based costing is closest to:
A) $64.04 per MH
B) $23.50 per MH
C) $28.55 per MH
D) $71.49 per MH
Activity Rate
In cost accounting, it refers to the cost driver rate used in activity-based costing to allocate overhead costs to products or services based on their consumption of activities.
General Factory
Typically refers to a manufacturing site where various goods are produced through a combination of human labor, machines, and processes.
Activity Cost Pool
A collection of all costs associated with a specific activity or process, used in activity-based costing to allocate indirect costs to products or services.
- Derive activity rates for cost pools in an ABC system.
Verified Answer
= $192,700 ÷ 8,200 MHs = $23.50 per MH
Learning Objectives
- Derive activity rates for cost pools in an ABC system.
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