Question
A company uses activity-based costing to assign overhead costs to its two products. Overhead costs have already been allocated to the company's activity cost pools
A company uses activity-based costing to assign overhead costs to its two products. Overhead costs have already been allocated to the company's activity cost pools as follows:
Activity Cost Pool | Estimated Overhead Costs | Estimated Activity Level |
Processing | $29,200 | 10,000 MHs |
Supervising | $13,000 | 1,000 Batches |
Processing costs are assigned to products using the activity level of machine-hours (MHs).
Supervising costs are assigned to products using the activity level of number of batches.
Actual activity data for each product appear below:
| Product A | Product B |
Processing (# Machine Hours) | 2,500 | 7,500 |
Supervising (# Batches) | 300 | 700 |
What is the estimated activity rate for the Supervising activity? (Include units in your answer for full credit.)__________
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