Activity Measures Riverton Industries manufactures and sells two products: Product X2 and Product Y3. The company uses an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Estimated Overhead Cost Expected ($) Activity Product X2 Product Y3 Total Labor-related DLHS $220,000 9,000 Production Orders $50,000 1,200 orders Ordersize MHs $210,000 7,500 The activity rate for the Order Size activity cost pool under activity-based costing is: A. $18.55 per MH B. $14.48 per MH C. $23.50 per MH D. $28.00 per MH

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...
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General Accounting

Activity
Measures
Riverton Industries manufactures and sells two products: Product X2 and Product
Y3. The company uses an activity-based costing system with the following activity
cost pools, activity measures, and expected activity:
Activity Cost
Pools
Estimated Overhead Cost
Expected
($)
Activity
Product X2
Product Y3
Total
Labor-related
DLHS
$220,000
9,000
Production
Orders
$50,000
1,200
orders
Ordersize
MHs
$210,000
7,500
The activity rate for the Order Size activity cost pool under activity-based costing
is:
A. $18.55 per MH
B. $14.48 per MH
C. $23.50 per MH
D. $28.00 per MH
Transcribed Image Text:Activity Measures Riverton Industries manufactures and sells two products: Product X2 and Product Y3. The company uses an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Estimated Overhead Cost Expected ($) Activity Product X2 Product Y3 Total Labor-related DLHS $220,000 9,000 Production Orders $50,000 1,200 orders Ordersize MHs $210,000 7,500 The activity rate for the Order Size activity cost pool under activity-based costing is: A. $18.55 per MH B. $14.48 per MH C. $23.50 per MH D. $28.00 per MH
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ISBN:
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