Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product J0. The company has an activity-based
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Question:
Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product J0. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated | Expected Activity | |||||
Activity Cost Pools | Activity Measures | Overhead Cost | Product Q5 | Product J0 | Total | |
Labor-related | DLHs | $ | 191,748 | 3,000 | 2,800 | 5,800 |
Production orders | orders | 70,536 | 300 | 500 | 800 | |
Order size | MHs | 295,592 | 4,300 | 4,500 | 8,800 | |
$ | 557,876 | |||||
The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
a. $36.23 per MH
b. $68.48 per MH
c. $96.19 per MH
d. $33.59 per MH
Related Book For
Financial Accounting
ISBN: 978-0324645576
10th edition
Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice
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