Dog 16McGrawPrivott, Incorporated, manufactures and sells two products: Product 29 and Product NO. The company is considering adopting an activity-basedcosting system with the following activity cost pools, activity measures, and expected activity:Activity Cost PoolsLabor-relatedProduct testingOrder sizeMultiple Choice$32.16 per DLH$68.21 per DLH$652.98 per DLHActivityMeasures$79.58 per DLHDLHStestsMHSThe activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:EstimatedOverheadCost$ 328,01847,747473,108$ 848,873< PrevExpected ActivityProduct Z9 Product NO6,8003,4006007004,4004,70016 of 20wwwwwwNextTotal10,2001,3009,100

The overhead is applied to the production on the basis of pre-determined overhead rate. The…

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

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 3E

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