Marchan, Inc., manufactures and sells two products: Product K1 and Product S6. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The company is considering adopting 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)$45.73 per MH
B)$254.97 per MH
C)$135.15 per MH
D)$58.06 per MH

Question

Marchan, Inc., manufactures and sells two products: Product K1 and Product S6. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:  The company is considering adopting 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)$45.73 per MH 
B)$254.97 per MH 
C)$135.15 per MH 
D)$58.06 per MH

Quizplus · Accepted Answer

The Answer of Marchan, Inc., manufactures and sells two products: Product K1 and Product S6. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:  The company is considering adopting 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)$45.73 per MH 
B)$254.97 per MH 
C)$135.15 per MH 
D)$58.06 per MH