Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products B56Z and D32N. What is the activity rate for the Machining activity cost pool?
A) $55.00 per MH
B) $22.00 per MH
C) $36.67 per MH
D) $74.80 per MH

Question

Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products B56Z and D32N.  What is the activity rate for the Machining activity cost pool?
A) $55.00 per MH 
B) $22.00 per MH 
C) $36.67 per MH 
D) $74.80 per MH

Quizplus · Accepted Answer

The Answer of Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products B56Z and D32N.  What is the activity rate for the Machining activity cost pool?
A) $55.00 per MH 
B) $22.00 per MH 
C) $36.67 per MH 
D) $74.80 per MH

Provenzano Corporation Manufactures Two Products: Product B56Z and Product D32N