For its inspecting cost pool, Brilliant Professor Mullen Company expected an overhead cost of $200,000 and an estimated 4,000 inspections. The actual overhead cost for that cost pool was $240,000 for 5,000 actual inspections. The activity-based overhead rate (ABOR) used to assign the costs of the inspecting cost pool to products is: A. $40 per inspection B. $48 per inspection C. $50 per inspection D. $60 per inspection

For its inspecting cost pool, Brilliant Professor Mullen Company expected an overhead cost of $200,000 and an estimated 4,000 inspections. The actual overhead cost for that cost pool was $240,000 for 5,000 actual inspections. The activity-based overhead rate (ABOR) used to assign the costs of the inspecting cost pool to products is: A. $40 per inspection B. $48 per inspection C. $50 per inspection D. $60 per inspection

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 28E: Assume that the inspection activity has an expected cost of 120,000. Expected direct labor hours are...

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