One of Melman Company's activity cost pools is inspecting, with an estimated overhead of $100,000. Melman produces throw rugs (700 inspections) and area rugs (1,300 inspections). How much of the inspecting cost pool should be assigned to throw rugs? A) $35,000. B) $50,000. C) $53,846. D) $100,000.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 9EB: Frenchys makes two types of scarves: polyester (poly) and silk. There are two cost pools: setup,...
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I need answer financial accounting

One of Melman Company's activity cost pools is
inspecting, with an estimated overhead of $100,000.
Melman produces throw rugs (700 inspections) and area
rugs (1,300 inspections). How much of the inspecting cost
pool should be assigned to throw rugs?
A) $35,000.
B) $50,000.
C) $53,846.
D) $100,000.
Transcribed Image Text:One of Melman Company's activity cost pools is inspecting, with an estimated overhead of $100,000. Melman produces throw rugs (700 inspections) and area rugs (1,300 inspections). How much of the inspecting cost pool should be assigned to throw rugs? A) $35,000. B) $50,000. C) $53,846. D) $100,000.
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