Encarnacion Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. In the
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Overhead costs:
Equipment expense ........ $77,000
Indirect labor ......... $8,000
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Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the other activity cost pool are not assigned to products. Activity data for the company's two products follow:
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Finally, the costs of Processing and Supervising are combined with the following sales and direct cost data to determine product margins.
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The activity rate for the Supervising activity cost pool under activity-based costing is closest to:
A) $8.00 per batch B) $17.00 per batch C) $26.67 per batch D) $85.00 per batch
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Managerial Accounting Tools For Business Decision Making
ISBN: 9781119754053
9th Edition
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell
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