What is activity rate? ALL OTHER ANSWERS ARE CORRECT

value: 2.77 points You did not receive full credit for this question in a previous attempt Exercise 17-11 Activity-based costing and overhead cost allocation LO P3 The following is taken from Ronda Co.'s internal records of its factory with two production departments. The cost driver for indirect labor and supplies is direct labor costs, and the cost driver for the remaining overhead items is number of hours of machine use. Department 1 Department 2 Direct Labor Machine Use Hours $ 18,800 2.000 13.200 1,200 Totals $ 32,000 3,200 Factory overhead costs Rent and utilities Indirect labor General office expense Depreciation Equipment Supplies $ 12,200 5,400 4,000 3,000 2.600 Total factory overhead $ 27,200 Compute the total amount of overhead cost allocated to Department 1 using activity-based costing. (Round activity rate answers to 2 decimal places.) Costs to be allocated Estimated Cost driver Estimated cost $ 8,000 Cost driver quantity incurred 18,800 OH Allocated $ 4,700 $ 32.000 direct labor costs Activity Rate 0.25 per direct labor dollar 6.00 $ Indirect labor and supplies Rent, utilities, general office and depreciation 19,200 3.200 machine hours $ 2,000 12.000 16,700 allocated $ per direct labor dollar per direct labor hour per direct material dollar per machine hour Exercise 17-11 Activity-based costing and overhead cost allocation LO P3 The following is taken from Ronda Co.'s internal records of its factory with two production departments. The cost driver for indirect labor and supplies is direct labor costs, and the cost driver for the remaining overhead items is number of hours of machine use. Department 1 Department 2 Direct Labor Machine Use Hours $ 18,800 2,000 13,200 1,200 Totals $ 32,000 3,200 Factory overhead costs Rent and utilities Indirect labor General office expense Depreciation-Equipment Supplies $ 12,200 5,400 4,000 3,000 2,600 Total factory overhead $ 27,200 Compute the total amount of overhead cost allocated to Department 1 using activity-based costing. (Round activity rate answers to 2 decimal places.) Estimated Cost driver Cost driver quantity incurred OH Allocated Costs to be allocated Estimated Cost Indirect labor and $ 8,000 supplies Rent, utilities, general 19,200 office and depreciation $ 32,000 direct labor costs $ Agvity Rate 0.25 per direct material dollar 6.00 er machine hour $ 18,800 $ 4.700 3 ,200 machine hours $ 2,000 Total Overhead allocated 12,000 16,700 $