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Sharon is the controller for Carla Vista Inc., a factory that creates unique dog chew toys. Until now, Carla Vista has been using a single
Sharon is the controller for Carla Vista Inc., a factory that creates unique dog chew toys. Until now, Carla Vista has been using a single plant-wide rate of $ 10.40 per direct labor hour to allocate Manufacturing Overhead (MOH) costs. Sharon has been debating a switch to activity-based costing and has derived the following activity-based rates: $18.00 per machine hour $11.00 per direct labor hour $7.00 per inspection hour A recent production run used 80 machine hours, 250 direct labor hours, and 9 inspection hours. How much MOH would be allocated using the newly derived activity-based rates? O $4190.00 $1890.00 $2520.00 $4253.00
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