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 Product Design activity cost pool?
A) $9 per product
B) $88,000 per product
C) $44,000 per product
D) $880 per product

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 Product Design activity cost pool?
A) $9 per product 
B) $88,000 per product 
C) $44,000 per product 
D) $880 per product

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 Product Design activity cost pool?
A) $9 per product 
B) $88,000 per product 
C) $44,000 per product 
D) $880 per product

Provenzano Corporation Manufactures Two Products: Product B56Z and Product D32N