Previous Page Next Page Page 39 of 39 Question 39 (2.5 points) Stacey Corporation has two products: M and N. The company uses activity-based costing. The total cost and activity for each of the company's three activity cost pools are as follows: Total Activity Activity Cost Total Produc Produc total Pool Cost tMtN Activity 1 $23,500 400 100 500 Activity 2 $18,000 500 200 700 Activity 3 $34,600 600 300 900 The activity rate under the activity-based costing system for Activity 3 is closest to: OA) $115.33 OB) $36.24 OC) $38.44 OD) $84.56 Question 40 (2.5 points) Hobbibobbit Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the machine-hours for the upcoming year at 10,000 machine-hours. The estimated variable manufacturing overhead was $6.82 per machine-hour and the estimated total fixed manufacturing overhead was $230,200. The predetermined overhead rate for the recently completed year was