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 Activity Cost Activity Estimated Pools Measures Overhead Cost ($) Product Product Total A6 15 Labor-related DLHS $196,138 8,700 3,300 12,000 Production orders Orders $47,124 1,150 1,350 2,500 Order size MHs $188,147 6,100 6,200 12,300 $431,049 The activity rate for the Order Size activity cost pool under activity-based costing is: A. $19.78 per MH B. $59.44 per MH C. $35.95 per MH D. $15.30 per MH

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 Activity Cost Activity Estimated Pools Measures Overhead Cost ($) Product Product Total A6 15 Labor-related DLHS $196,138 8,700 3,300 12,000 Production orders Orders $47,124 1,150 1,350 2,500 Order size MHs $188,147 6,100 6,200 12,300 $431,049 The activity rate for the Order Size activity cost pool under activity-based costing is: A. $19.78 per MH B. $59.44 per MH C. $35.95 per MH D. $15.30 per MH

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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Starma Inc
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Paul company has two pro..accounting question