Tandem Company manufactures two products (D and F). The overhead costs ($89,750) have been divided into three cost pools that use the following activity drivers: Product Number of Setups Machine Hours Packing Orders D 10 500 75 F 10 2,000 175 Cost per pool $11,000 $60,000 $18,750 What is the allocation rate per packing order using activity-based costing? a.$250 b.$1,875 c.$75 d.$
Tandem Company manufactures two products (D and F). The overhead costs ($89,750) have been divided into three cost pools that use the following activity drivers: Product Number of Setups Machine Hours Packing Orders D 10 500 75 F 10 2,000 175 Cost per pool $11,000 $60,000 $18,750 What is the allocation rate per packing order using activity-based costing? a.$250 b.$1,875 c.$75 d.$
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...
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Tandem Company manufactures two products (D and F). The overhead costs ($89,750) have been divided into three cost pools that use the following activity drivers:
Product Number of Setups Machine Hours Packing Orders
D 10 500 75
F 10 2,000 175
Cost per pool $11,000 $60,000 $18,750
What is the allocation rate per packing order using activity-based costing?
a.$250
b.$1,875
c.$75
d.$18,750
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