Question
Your Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's
Your Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:
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| Estimated | Expected Activity |
|
| |||||||
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| Activity Cost Pool | Cost | Product A | Product B | Total |
|
| |||||
|
| Machine related | $17,600 | 700 | 300 | 1,000 | MH | ||||||
|
| Batch setup | $32,600 | 600 | 200 | 800 | Setups | ||||||
|
| Other | $52,500 | 900 | 500 | 1,400 | DLH | ||||||
What is the activity rate under the activity-based costing system for Other costs?
Group of answer choices
a. $105 per DLH
b. $58.33
c. $105
d. $37.50 per DLH
e. $58.33 per DLH
f. $37.50
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappetta
22nd edition
9781259566905, 978-0-07-76328, 77862279, 1259566900, 0-07-763289-3, 978-0077862275
