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Kimberly is the controller for Crane Inc., a factory that creates unique dog chew toys. Until now, Crane has been using a single plant-wide rate
Kimberly is the controller for Crane Inc., a factory that creates unique dog chew toys. Until now, Crane has been using a single plant-wide rate of $10.70 per direct labor hour to allocate Manufacturing Overhead (MOH) costs. Kimberly has been debating a switch to activity-based costing and has derived the following activity-based rates: $17.00 per machine hour $12.00 per direct labor hour $6.00 per inspection hour A recent production run used 74 machine hours, 190 direct labor hours, and 9 inspection hours. How much MOH would be allocated using the newly derived activity-based rates? O $3592.00 $3538.00 $4995.00 O $3111.17
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