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 Pools Activity Measures Estimated Overhead Cost ($) Product A6 Product 15 Total Labor-related DLHS $187,632 9,300 4,900 14,200 Production orders Orders $39,125 2,350 2,750 5,100 Order size MHs $175,140 7,600 7,800 15,400 $401,897 The activity rate for the Order Size activity cost pool under activity-based costing is: A. $29.58 per MH B. $15.10 per MH C. $11.37 per MH D. $19.30 per MH
Strama, Inc., manufactures and sells two products: Product A6 and Product 15. The company has an activity- based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Activity Measures Estimated Overhead Cost ($) Product A6 Product 15 Total Labor-related DLHS $187,632 9,300 4,900 14,200 Production orders Orders $39,125 2,350 2,750 5,100 Order size MHs $175,140 7,600 7,800 15,400 $401,897 The activity rate for the Order Size activity cost pool under activity-based costing is: A. $29.58 per MH B. $15.10 per MH C. $11.37 per MH D. $19.30 per MH
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...
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