Sorice Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $20,200; Supervising, $11,000; and Other, $66,800. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: Batches MHs (Processing) (Supervising) Product 19 4,800 200 Product W7 15, 200 800 Total 20,000 1,000 The activity rate for the Supervising activity cost pool under activity-based costing is closest to:

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Multiple Choice
$7.50 per batch
$6.00 per batch
$11.00 per batch
$98.00 per batch
Transcribed Image Text:Multiple Choice $7.50 per batch $6.00 per batch $11.00 per batch $98.00 per batch
Sorice Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools
as follows: Processing, $20,200; Supervising, $11,000; and Other, $66,800. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are
assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:
Batches
MHs (Processing) (Supervising)
Product 19
4,800
200
Product W7
15, 200
800
Total
20,000
1,000
The activity rate for the Supervising activity cost pool under activity-based costing is closest to:
Transcribed Image Text:Sorice Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $20,200; Supervising, $11,000; and Other, $66,800. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: Batches MHs (Processing) (Supervising) Product 19 4,800 200 Product W7 15, 200 800 Total 20,000 1,000 The activity rate for the Supervising activity cost pool under activity-based costing is closest to:
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