FDC-11063 Incorporated, manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Activity Measures DLHS Estimated Overhead Cost Product Z1 Expected Activity Product Z8 Total $145,000 4,000 2,000 6,000 Machine setups Order size setups MHs 68,360 1,100 300 1,400 1,069,190 2,700 3,100 5.800 $ 1,282,550 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Choice $98.53 per MH $257.34 per MH О $184.34 per MH $196.13 per MH
FDC-11063 Incorporated, manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Activity Measures DLHS Estimated Overhead Cost Product Z1 Expected Activity Product Z8 Total $145,000 4,000 2,000 6,000 Machine setups Order size setups MHs 68,360 1,100 300 1,400 1,069,190 2,700 3,100 5.800 $ 1,282,550 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Choice $98.53 per MH $257.34 per MH О $184.34 per MH $196.13 per MH
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:FDC-11063 Incorporated, manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system
with the following activity cost pools, activity measures, and expected activity:
Activity Cost Pools
Activity
Measures
Labor-related
DLHS
Estimated
Overhead Cost
$ 145,000
Expected Activity
Product Z1 Product Z8
Total
4,000
2,000
6,000
Machine setups
Order size
setups
MHS
68,360
1,069,190
1,100
300
1,400
2,700
3,100
5,800
$ 1,282,550
The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
Multiple Choice
О
$98.53 per MH
О
$257.34 per MH
$184.34 per MH
$196.13 per MH
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