Excelor Corporation manufactures and sells two products: Product X1 and Product Y2. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Activity Estimated Product Product Total Pools Measures Overhead Cost ($) X1 Y2 Labor-related Direct Labor 220,500 7,500 3,000 10,500 Hours (DLHs) Production Orders 55,000 1,200 800 2,000 orders Order size Machine Hours 195,000 6,000 7,000 13,000 (MHs) What is the activity rate for the Order Size activity cost pool under activity-based costing?

Principles of Accounting Volume 2
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Author:OpenStax
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Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 10EA: Customs has three cost pools and an associated cost driver to allocate the costs to the product. The...
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Excelor Corporation manufactures and sells two products: Product X1 and Product Y2.
The company has an activity-based costing system with the following activity cost pools,
activity measures, and expected activity:
Activity Cost Activity
Estimated
Product
Product
Total
Pools
Measures
Overhead Cost ($) X1
Y2
Labor-related
Direct
Labor
220,500
7,500
3,000
10,500
Hours (DLHs)
Production
Orders
55,000
1,200
800
2,000
orders
Order size
Machine
Hours 195,000
6,000
7,000
13,000
(MHs)
What is the activity rate for the Order Size activity cost pool under activity-based
costing?
Transcribed Image Text:Excelor Corporation manufactures and sells two products: Product X1 and Product Y2. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Activity Estimated Product Product Total Pools Measures Overhead Cost ($) X1 Y2 Labor-related Direct Labor 220,500 7,500 3,000 10,500 Hours (DLHs) Production Orders 55,000 1,200 800 2,000 orders Order size Machine Hours 195,000 6,000 7,000 13,000 (MHs) What is the activity rate for the Order Size activity cost pool under activity-based costing?
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