ns Sustainable Housing uses activity-based costing for its two models of tiny homes: Small and Micro. There are three activity cost pools related to production, with estimated costs and expected activity as follows: Activity Cost Pool Fabrication Painting Finishing Estimated Cost Activity Cost Driver $1,800,000 Labor hours $600,000Machine hours $900,000 Units The activity rates for Fabrication and Painting are $4,500 per labor hour and $1,200 per machine hour. O $1,800 per labor hour and $300 per machine hour. O $3,000 per labor hour and $400 per machine hour. O $1,800 per labor hour and $1,200 per machine hour. Amount of Activity Small Micro 600 1,500 300 400 500 700
ns Sustainable Housing uses activity-based costing for its two models of tiny homes: Small and Micro. There are three activity cost pools related to production, with estimated costs and expected activity as follows: Activity Cost Pool Fabrication Painting Finishing Estimated Cost Activity Cost Driver $1,800,000 Labor hours $600,000Machine hours $900,000 Units The activity rates for Fabrication and Painting are $4,500 per labor hour and $1,200 per machine hour. O $1,800 per labor hour and $300 per machine hour. O $3,000 per labor hour and $400 per machine hour. O $1,800 per labor hour and $1,200 per machine hour. Amount of Activity Small Micro 600 1,500 300 400 500 700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ns
Sustainable Housing uses activity-based costing for its two models of tiny homes: Small and
Micro. There are three activity cost pools related to production, with estimated costs and
expected activity as follows:
Activity Cost Pool
Fabrication
Painting
Finishing
Estimated Cost Activity Cost Driver
$1,800,000 Labor hours
$600,000Machine hours
$900,000 Units
The activity rates for Fabrication and Painting are
$4,500 per labor hour and $1,200 per machine hour.
O $1,800 per labor hour and $300 per machine hour.
O $3,000 per labor hour and $400 per machine hour.
O $1,800 per labor hour and $1,200 per machine hour.
Amount of Activity
Small
Micro
600
1,500
300
400
500
700
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