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Umanzor Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as
Umanzor Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $52,500; Supervising, $28,6o0, and Other, $24,400. 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 appear below MHs (Processing) Batches (supervising) 18,500 Product S5 1,400 510 Product F5 1,100 19,600 1,910 Total The activity rate for the Processing activity cost pool under activity-based costing is closest to: $2.36 per MH O $2.98 per MH O $2.68 per MH O $7.11 per MH
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