Privott, Inc., manufactures and sells two products: Product 29 and Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Measures Cost $ 333,018 se, 247 Product 29 Product N0 7,300 Total Labor-related DLHS 3,900 11,200 1,800 10,100 Product testing tests 850 950 Order size MHs 475,608 4,900 5, 200 $ 858,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to Multiple Choice
Privott, Inc., manufactures and sells two products: Product 29 and Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Measures Cost $ 333,018 se, 247 Product 29 Product N0 7,300 Total Labor-related DLHS 3,900 11,200 1,800 10,100 Product testing tests 850 950 Order size MHs 475,608 4,900 5, 200 $ 858,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to Multiple Choice
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1
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Privott, Inc., manufactures and sells two products: Product 29 and Product NO, The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and
expected activity:
Estimated
Expected Activity
Activity
Overhead
1
Activity Cost Pools
Measures
Cost
Product 29 Product NO
Total
points
$ 333,018
50,247
Labor-related
DLHS
7,300
3,900
11,200
Product testing
Order size
tests
1,800
10,100
850
950
MHs
475,608
4,900
5,200
$ 858,873
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
Multiple Choice
$52.89 per DLH
$47715 per DLH
$59.11 per DLH
$29.73 per DLH
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