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 Order Size activity cost pool?
A) $18.67 per DLH
B) $46.67 per DLH
C) $70.00 per DLH
D) $28.00 per DLH

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 Order Size activity cost pool?
A) $18.67 per DLH 
B) $46.67 per DLH 
C) $70.00 per DLH 
D) $28.00 per DLH

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 Order Size activity cost pool?
A) $18.67 per DLH 
B) $46.67 per DLH 
C) $70.00 per DLH 
D) $28.00 per DLH

Provenzano Corporation Manufactures Two Products: Product B56Z and Product D32N