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Studler Corporation has an activity-based costing system with three activity cost poolsProcessing, Supervising, and Other. In the first stage allocations, costs in the two overhead

Studler Corporation has an activity-based costing system with three activity cost poolsProcessing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Overhead costs:
Equipment expense $ 74,650
Indirect labor $ 4,500

Distribution of Resource Consumption Across Activity Cost Pools:
Activity Cost Pools
Processing Supervising Other
Equipment expense 0.60 0.20 $ 0.20
Indirect labor 0.10 0.50 0.40

Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:

Activity:
MHs (Processing) Batches (Supervising)
Product Y4 2,025 135
Product R6 11,475 2,565
Total 13,500 2,700

The activity rate for the Supervising activity cost pool under activity-based costing is closest to:

Noreen 4e Rechecks 2017-24-03

$28.05 per batch

$1.80 per batch

$1.67 per batch

$6.36 per batch

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