Question
Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs Cost
Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
Cost Pool | Overhead Costs | Cost driver | Activity level | ||
Supervision of direct labor | $160,000 | Direct laborminushours | 800,000 | ||
Machine maintenance | $147,200 | Machine minushours | 20,000 | ||
Facility rent | $237,500 | Square feet of area | 125,000 | ||
Total overhead costs | 544,700 |
The accounting records show the Mossman Job consumed the following resources:
Cost driver | Actual level | ||
Direct laborminushours | 260 | ||
Machineminushours | 1,900 | ||
Square feet of area | 80 |
If Nile Corp. uses the three activity cost pools to allocate overhead costs, what are the
activity minuscost
driver rates for supervision of direct labor, machinemaintenance, and facility rent, respectively?
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