Aboud,Inc. ,manufactures and sells two products: Product Q6 and Product Z7.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $25.90 per DLH.The direct materials cost per unit for each product is given below: 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)$75.14 per MH
B)$243.26 per MH
C)$30.38 per MH
D)$25.97 per MH

Question

Aboud,Inc. ,manufactures and sells two products: Product Q6 and Product Z7.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below:  The direct labor rate is $25.90 per DLH.The direct materials cost per unit for each product is given below:  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)$75.14 per MH 
B)$243.26 per MH 
C)$30.38 per MH 
D)$25.97 per MH

Quizplus · Accepted Answer

Activity rate = Estimated overhead cost ÷ Total expected activity
= $199,969 ÷ 7,700 MHs = $25.97 per MH

Aboud,Inc ,Manufactures and Sells Two Products: Product Q6 and Product