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: Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Production orders Measures Cost Product A6 Total 9,000 Product 15 DLHS $181,138 7,200 1,800 orders 39,624 400 1,000 9,300 600 Order size MHs 173,147 4,600 4,700 $393,909 The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
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: Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Production orders Measures Cost Product A6 Total 9,000 Product 15 DLHS $181,138 7,200 1,800 orders 39,624 400 1,000 9,300 600 Order size MHs 173,147 4,600 4,700 $393,909 The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 8E: Comfort Foods Inc. uses activity-based costing to determine product costs. For each activity listed...
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![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
Estimated
Expected Activity
Activity
Overhead
Activity Cost Pools
Labor-related
Production orders
Measures
Cost
$181,138
39,624
173,147
Product A6
Product I5
1,800
Total
DLHS
7,200
400
9,000
orders
600
1,000
Order size
MHS
4,600
4,700
9,300
$393,909
The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
Multiple Cholce
$23.74 per MH
$100.63 per MH
$43.77 per MH
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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
Estimated
Expected Activity
Activity
Overhead
Activity Cost Pools
Labor-related
Production orders
Measures
Cost
$181,138
39,624
173,147
Product A6
Product I5
1,800
Total
DLHS
7,200
400
9,000
orders
600
1,000
Order size
MHS
4,600
4,700
9,300
$393,909
The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
Multiple Cholce
$23.74 per MH
$100.63 per MH
$43.77 per MH
< Prev
2 of 10
Noxt >
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92 F AQI 61
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