Schoeninger,Inc. ,manufactures and sells two products: Product X1 and Product I6.The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
A)$149.53 per DLH
B)$30.23 per DLH
C)$578.93 per DLH
D)$124.61 per DLH

Question

Schoeninger,Inc. ,manufactures and sells two products: Product X1 and Product I6.The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity:  The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
A)$149.53 per DLH 
B)$30.23 per DLH 
C)$578.93 per DLH 
D)$124.61 per DLH

Quizplus · Accepted Answer

Activity rate = Estimated overhead cost ÷ Total expected activity
= $293,231 ÷ 9,700 DLHs = $30.23 per DLH