Question
Strama, Inc., manufactures and sells two products: Product A6 and Product I5. The company has an activity-based costing system with the following activity cost pools,
Strama, Inc., manufactures and sells two products: Product A6 and Product I5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
EstimatedExpected ActivityActivity Cost PoolsActivity MeasuresOverhead CostProduct A6Product I5TotalLabor-relatedDLHs$184,1387,5002,1009,600Production ordersorders41,1245507501,300Order sizeMHs176,1474,9005,0009,900$401,409
The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
rev: 03_25_2018_QC_CS-119201
A. $22.75 per MH
B. $87.68 per MH
C. $41.81 per MH
D. $17.79 per MH
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Essentials of Accounting for Governmental and Not-for-Profit Organizations
Authors: Paul A. Copley
10th Edition
007352705X, 978-0073527055
