Question
Assume a company that uses activity-based costing (ABC) has only two products A and B. The company does not have any organization-sustaining activities or unused
Assume a company that uses activity-based costing (ABC) has only two products A and B. The company does not have any organization-sustaining activities or unused capacity costs. The companys total manufacturing overhead cost of $56,000 has been allocated to the three activities shown below:
| Setups | Machining | Packing Orders | |||||||||
| Activity measure quantity: Product A | 20 | 1,000 | 150 | ||||||||
| Activity measure quantity: Product B | 20 | ? | 350 | ||||||||
| Overhead cost per activity cost pool | ? | ? | $ | 10,000 | |||||||
| Activity rate | $ | 150 | per setup | $ | 8 | per MH | ? | ||||
The activity rate for the Packing Orders activity is closest to:
How many machine-hours were consumed by Product B?
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Glencoe Accounting Concepts Procedures Applicatons
Authors: McGraw-Hill Education
3rd Edition
0028036174, 978-0028036175
