Hawkins Manufacturing manufactures and sells two products: Product A1 and Product B2. The company uses an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Estimated Measures Overhead Expected Activity Product A1 Product Total B2 Cost ($) Labor- DLHs $180,000 8,000 related Production Orders $40,000 1,000 orders Order size MHs $160,000 6,000 What is the activity rate for the Order Size activity cost pool under activity- based costing? a. $20.00 per MH b. $26.67 per MH c. $24.00 per MH d. $30.00 per MH

Hawkins Manufacturing manufactures and sells two products: Product A1 and Product B2. The company uses an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Estimated Measures Overhead Expected Activity Product A1 Product Total B2 Cost ($) Labor- DLHs $180,000 8,000 related Production Orders $40,000 1,000 orders Order size MHs $160,000 6,000 What is the activity rate for the Order Size activity cost pool under activity- based costing? a. $20.00 per MH b. $26.67 per MH c. $24.00 per MH d. $30.00 per MH

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...

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