Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment expense Indirect labor $ 59,000 $ 12,700 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Processing Supervising 0.50 Other Equipment expense 0.30 0.20 Indirect labor 0.30 0.50 0. 20 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: Activity: MHs Batches (Processing) (Supervising) 1,190 1,330 Product F6 17, 200 1,620 18,820 Product Xe Total 2,520 The activity rate for the Supervising activity cost pool under activity-based costing is closest to:

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and
indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow:
Overhead costs:
$ 59,000
$ 12,700
Equipment expense
Indirect labor
Distribution of Resource Consumption Across Activity Cost Pools:
Activity Cost Pools
Processing
Supervising
Other
Equipment expense
0.30
0.50
0.20
Indirect labor
0.30
0.50
0.20
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:
Activity:
MHs
Batches
(Processing)
(Supervising)
Product F6
17, 200
1,190
Product Xo
1,620
1,330
Total
18,820
2,520
The activity rate for the Supervising activity cost pool under activity-based costing is closest to:
Transcribed Image Text:Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: $ 59,000 $ 12,700 Equipment expense Indirect labor Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Processing Supervising Other Equipment expense 0.30 0.50 0.20 Indirect labor 0.30 0.50 0.20 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: Activity: MHs Batches (Processing) (Supervising) Product F6 17, 200 1,190 Product Xo 1,620 1,330 Total 18,820 2,520 The activity rate for the Supervising activity cost pool under activity-based costing is closest to:
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