Aunt Lucy's Candies Aunt Lucy's Candies sells standard and premium chocolate candies through its catalog business. Many of the candies are sold in bulk to other companies. Last year, the company incurred $400,000 in overhead costs. After implementing activity-based costing (ABC), the company's controller identified the following information:
The number of activities for standard and premium candies is as follows:
Refer to the Aunt Lucy's Candies information above. What is the overhead rate for the processing activity?
A) $0.92 per unit
B) $1.44 per unit
C) $0.40 per unit
D) $0.72 per unit

Question

Aunt Lucy's Candies Aunt Lucy's Candies sells standard and premium chocolate candies through its catalog business. Many of the candies are sold in bulk to other companies. Last year, the company incurred $400,000 in overhead costs. After implementing activity-based costing (ABC), the company's controller identified the following information:
 The number of activities for standard and premium candies is as follows:
 Refer to the Aunt Lucy's Candies information above. What is the overhead rate for the processing activity?
A) $0.92 per unit 
B) $1.44 per unit 
C) $0.40 per unit 
D) $0.72 per unit

Quizplus · Accepted Answer

The Answer of Aunt Lucy's Candies Aunt Lucy's Candies sells standard and premium chocolate candies through its catalog business. Many of the candies are sold in bulk to other companies. Last year, the company incurred $400,000 in overhead costs. After implementing activity-based costing (ABC), the company's controller identified the following information:
 The number of activities for standard and premium candies is as follows:
 Refer to the Aunt Lucy's Candies information above. What is the overhead rate for the processing activity?
A) $0.92 per unit 
B) $1.44 per unit 
C) $0.40 per unit 
D) $0.72 per unit

Aunt Lucy's Candies Aunt Lucy's Candies Sells Standard and Premium