FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Forner, Incorporated, manufactures and sells two products: Product 21 and Product Z8. The company has an activity-based costing system with the
following activity cost pools, activity measures, and expected activity:
Activity Cost Pools
Labor-related
Machine setups
Order size
Multiple Choice
Activity
Measures
DLHS
setups
MHS
$7129 per MH
Estimated
Expected Activity
Overhead Cost Product 21 Product 28
$ 109,600
51,690
808,470
$ 969,760
4,800
700
2,800
The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
2,400
300
3,500
Total
7,200
1,000
6,300
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Transcribed Image Text:Forner, Incorporated, manufactures and sells two products: Product 21 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Machine setups Order size Multiple Choice Activity Measures DLHS setups MHS $7129 per MH Estimated Expected Activity Overhead Cost Product 21 Product 28 $ 109,600 51,690 808,470 $ 969,760 4,800 700 2,800 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: 2,400 300 3,500 Total 7,200 1,000 6,300
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