Solved

Answer the Following Questions Using the Information Below:
Nile Corp

Question 119

Multiple Choice

Answer the following questions using the information below:
Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
 Cost Pool  Overhead Costs  Cost driver  Activity level  Supervision of direct labor $380,000 Direct labor-hours 760,000 Machine maintenance $120,000 Machine-hours 960,000 Facility rent $200,000 Square feet of area 125,000 Total overhead costs $640,000\begin{array} { l r l r } \text { Cost Pool } & \text { Overhead Costs } & \text { Cost driver } & \text { Activity level } \\\text { Supervision of direct labor } & \$ 380,000 & \text { Direct labor-hours } & 760,000 \\\text { Machine maintenance } & \$ 120,000 & \text { Machine-hours } & 960,000 \\\text { Facility rent } & \$ 200,000 & \text { Square feet of area } & 125,000 \\\text { Total overhead costs } & \$ 640,000 & &\end{array} The accounting records show the Mossman Job consumed the following resources:
 Cost driver  Actual level  Direct labor-hours 200 Machine-hours 1,600 Square feet of area 50\begin{array}{ll}\text { Cost driver } & \text { Actual level } \\\text { Direct labor-hours } & 200 \\\text { Machine-hours } & 1,600 \\\text { Square feet of area } & 50\end{array}
-If Nile Corp.uses the three activity cost pools to allocate overhead costs,what are the activity-cost driver rates for supervision of direct labor,machine maintenance,and facility rent,respectively?


A) $0.50 per dlh; $0.125 per mh; $1.50 per sq ft
B) $1.25 per dlh; $0.25 per mh; $1.67 per sq ft
C) $0.50 per dlh; $0.125 per mh; $1.60 per sq ft
D) $0.40 per dlh; $0.125 per mh; $1.68 per sq ft

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents