Privott, Incorporated, manufactures and sells two products: Product 29 and Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Product testing Order size Activity Measures DLHS tests MHS Estimated Overhead Cost $ 328,018 47,747 473,108 $ 848,873 Expected Activity Product 29 Product NO 6,800 3,400 600 700 4,400 4,700 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: Total 10,200 1,300 9,100
Privott, Incorporated, manufactures and sells two products: Product 29 and Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Product testing Order size Activity Measures DLHS tests MHS Estimated Overhead Cost $ 328,018 47,747 473,108 $ 848,873 Expected Activity Product 29 Product NO 6,800 3,400 600 700 4,400 4,700 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: Total 10,200 1,300 9,100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Privott, Incorporated, manufactures and sells two products: Product 29 and Product NO. The company is considering adopting an activity-based
costing system with the following activity cost pools, activity measures, and expected activity:
Activity Cost Pools
Labor-related
Product testing
Order size
Multiple Choice
$32.16 per DLH
$68.21 per DLH
$652.98 per DLH
Activity
Measures
$79.58 per DLH
DLHS
tests
MHS
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
Estimated
Overhead
Cost
$ 328,018
47,747
473,108
$ 848,873
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Expected Activity
Product Z9 Product NO
6,800
3,400
600
700
4,400
4,700
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Total
10,200
1,300
9,100
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