Asked by joban preet Thind on May 31, 2024
Verified
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
A) $129.26 per DLH
B) $161.57 per DLH
C) $877.63 per DLH
D) $28.53 per DLH
Activity Rate
The cost driver rate used in activity-based costing to allocate costs more accurately to products or services based on specific activities.
Activity Cost Pool
A category in activity-based costing that aggregates costs incurred from a specific activity, facilitating the assignment of those costs to products or services based on their use of the activity.
Activity-Based Costing
A costing method that assigns overhead and indirect costs to related products and services based on the amount of resources they consume.
- Evaluate the rates of activity for multiple cost pools within an activity-based costing framework.
Verified Answer
= $136,944 ÷ 4,800 DLHs = $28.53 per DLH
Learning Objectives
- Evaluate the rates of activity for multiple cost pools within an activity-based costing framework.
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