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NulyMade Inc. computed an overhead rate for machining costs ($1,000,000) of $10 per machine hour. Machining costs are driven by machine hours. If computed based
NulyMade Inc. computed an overhead rate for machining costs ($1,000,000) of $10 per machine hour. Machining costs are driven by machine hours. If computed based on direct labor hours, the overhead rate for machining costs would be $20 per direct labor hour. The company produces two products, Grit and Grind. Grit requires 60,000 machine hours and 20,000 direct labor hours, while Grind requires 40,000 machine hours and 30,000 direct labor hours. Using activity-based costing, machining costs assigned to each product is Grit Grind A) $400,000 $600,000 B) $500,000 $500,000 C) $533,333 $466,667 D) $600,000 $400,000
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