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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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
Transcribed Image Text: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
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