Question
Steel Company uses activity-based costing and reports the following for this year. Compute an activity rate for each activity using activity-based costing. Activity Budgeted Cost
Steel Company uses activity-based costing and reports the following for this year. Compute an activity rate for each activity using activity-based costing.
Activity Budgeted Cost Activity Cost Driver
Budgeted Activity Usage
Cutting $ 126,000
Machine hours (MH)
3,600
Assembly 410,400
Direct labor hours (DLH) 7,600
Total $ 536,400
machine hours direct labor hours
O $35 per MH for Cutting; $54 per DLH for Assembly.
O $54 per MH for Cutting; $35 per DLH for Assembly.
O $11 per MH for Cutting; $37 per DLH for Assembly.
O $35 per MH for Cutting; $114 per DLH for Assembly.
O $48 per MH for Cutting; $48 per DLH for ASsembly.
Stcel Company uses activity-based costing and reports the following for this year. Compute an activity rate for each activity using activitybased costing. $35 per MH for Cutting: $54 per DLH for Assembly. $54 per MH for Cutting: $35 per DLH for Assembly. $11 per MH for Cutting; $37 per DLH for Assembly. $35 per MH for Cutting: $114 per DLH for Assembly. $48 per MH for Cutting: $48 per DLH for Assembly
Steel Company uses activity-based costing and reports the following for this year. Compute an activity rate for each activity using activity-based costing.
Activity Budgeted Cost Activity Cost Driver
Budgeted Activity Usage
Cutting $ 126,000
Machine hours (MH)
3,600
Assembly 410,400
Direct labor hours (DLH) 7,600
Total $ 536,400
machine hours direct labor hours
O $35 per MH for Cutting; $54 per DLH for Assembly.
O $54 per MH for Cutting; $35 per DLH for Assembly.
O $11 per MH for Cutting; $37 per DLH for Assembly.
O $35 per MH for Cutting; $114 per DLH for Assembly.
O $48 per MH for Cutting; $48 per DLH for ASsembly.
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