Strama, Inc., manufactures and sells two products: Product A6 and Product 15. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Estimated Activity Activity Product Product Overhead Total Cost Pools Measures S5 L3 Cost ($) Labor- DLHs 191,138 8,200 2,800 11,000 related Production Orders 44,624 900 1,100 2,000 orders Order size MHs 183,147 5,600 5,700 11,300 418,909 What is the activity rate for the Order Size activity cost pool under activity-based costing?
Strama, Inc., manufactures and sells two products: Product A6 and Product 15. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Estimated Activity Activity Product Product Overhead Total Cost Pools Measures S5 L3 Cost ($) Labor- DLHs 191,138 8,200 2,800 11,000 related Production Orders 44,624 900 1,100 2,000 orders Order size MHs 183,147 5,600 5,700 11,300 418,909 What is the activity rate for the Order Size activity cost pool under activity-based costing?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter12: Activity-based Management
Section: Chapter Questions
Problem 14E: Sanford, Inc., has developed value-added standards for four activities: purchasing parts, receiving...
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Transcribed Image Text:Strama, Inc., manufactures and sells two products: Product
A6 and Product 15. The company has an activity-based costing
system with the following activity cost pools, activity
measures, and expected activity:
Expected Activity
Estimated
Activity Activity
Product Product
Overhead
Total
Cost Pools Measures
S5
L3
Cost ($)
Labor-
DLHs
191,138
8,200 2,800 11,000
related
Production
Orders
44,624
900
1,100
2,000
orders
Order size MHs
183,147
5,600 5,700
11,300
418,909
What is the activity rate for the Order Size activity cost pool
under activity-based costing?
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