TB MC Qu. 4-24 (Static) Privott, Incorporated, manufactures... Privott, Incorporated, 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 Overhead Cost Activity Cost Pools Labor-related Product testing Order size Multiple Choice $91.49 per DLH $934.30 per DLH The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: $114.37 per DLH Activity Measures DLHS tests MHs $34.47 per DLH $ 324,018 45,747 471,108 $ 840,873 Expected Activity Product No 3,000 500 4,300 Product 29 6,400 400 4,000 Total 9,400 900 8,300
TB MC Qu. 4-24 (Static) Privott, Incorporated, manufactures... Privott, Incorporated, 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 Overhead Cost Activity Cost Pools Labor-related Product testing Order size Multiple Choice $91.49 per DLH $934.30 per DLH The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: $114.37 per DLH Activity Measures DLHS tests MHs $34.47 per DLH $ 324,018 45,747 471,108 $ 840,873 Expected Activity Product No 3,000 500 4,300 Product 29 6,400 400 4,000 Total 9,400 900 8,300
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 8CE: Electan Company produces two types of printers. The company uses ABC, and all activity drivers are...
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