Asked by Elmer Trejo on May 01, 2024
Verified
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
A) $141.07 per DLH
B) $235.12 per DLH
C) $33.06 per DLH
D) $697.35 per DLH
Labor-Related
Refers to factors or issues that pertain to the workforce or employment sector, including wages, working conditions, and labor laws.
Direct Labor-Hours (DLH)
The total hours worked by employees who are directly involved in the production process of goods or services.
Activity-Based Costing
A method of accounting that assigns costs to products or services based on the resources they consume.
- Compute activity rates applicable to various cost pools, utilizing the activity-based costing strategy.
Verified Answer
= $191,748 ÷ 5,800 DLHs = $33.06 per DLH
Learning Objectives
- Compute activity rates applicable to various cost pools, utilizing the activity-based costing strategy.
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