Question
anvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product J0. The company has an activity-based costing system with the following activity cost pools,
anvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product J0. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated | Expected Activity | |||||
Activity Cost Pools | Activity Measures | Overhead Cost | Product Q5 | Product J0 | Total | |
Labor-related | DLHs | $ | 191,748 | 3,000 | 2,800 | 5,800 |
Production orders | orders | 70,536 | 300 | 500 | 800 | |
Order size | MHs | 295,592 | 4,300 | 4,500 | 8,800 | |
$ | 557,876 | |||||
|
The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:
Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated | Expected Activity | |||||
Activity Cost Pools | Activity Measures | Overhead Cost | Product Z1 | Product Z8 | Total | |
Labor-related | DLHs | $ | 112,190 | 600 | 2,000 | 2,600 |
Machine setups | setups | 40,440 | 500 | 700 | 1,200 | |
Order size | MHs | 609,770 | 3,000 | 3,200 | 6,200 | |
$ | 762,400 | |||||
|
The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:
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