Boesenhofer, Inc., manufactures and sells two products: Product N6 and Product N7. The company has an activity-based
Fantastic news! We've Found the answer you've been seeking!
Question:
Boesenhofer, Inc., manufactures and sells two products: Product N6 and Product N7. 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 N6 | Product N7 | Total | |
Labor-related | DLHs | $ | 345,060 | 2,100 | 5,000 | 7,100 |
Machine setups | setups | 128,534 | 600 | 800 | 1,400 | |
Order size | MHs | 107,598 | 4,100 | 3,800 | 7,900 | |
$ | 581,192 | |||||
The activity rate for the Machine Setups activity cost pool is closest to:
a. $73.57 per setup
b. $91.81 per setup
c. $26.24 per setup
d. $28.32 per setup
Related Book For
Financial Accounting
ISBN: 978-0324645576
10th edition
Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice
Posted Date: