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 General Factory activity cost pool under activity-based costing is closest to:
A)$30.90 per MH
B)$32.58 per MH
C)$65.65 per MH
D)$32.66 per MH

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 General Factory activity cost pool under activity-based costing is closest to:
A)$30.90 per MH 
B)$32.58 per MH 
C)$65.65 per MH 
D)$32.66 per MH

Quizplus · Accepted Answer

Activity rate = Estimated overhead cost ÷ Total expected activity
= $268,830 ÷ 8,700 MHs = $30.90 per MH