Starma Inc Strama, Inc., manufactures and sells two products: Product A6 and Product Is. The company has an activity-basedcosting system with the following activity cost pools, activity measures, and expected activity:Activity Cost Pools Activity Measures Estimated Overhead Cost (5) Product A6 Product IsExpected ActivityLabor-relatedProduction ordersOrder sizeDLHSOrdersMHs$187,682$39,125$175,140$ 401,8979,3002,3507,600Total14,2004,9002,7505,1007,80015,400The activity rate for the Order Size activity cost pool under activity-based costing is:

Given:Total estimated overhead cost for order size = $175,140Total machine hours = 15,400…

Answered: Strama, Inc., manufactures and sells…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 4P: Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2....

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Vanvalkenburg. Inc., manufactures and sells two products: Product GQ5 and Product JO. 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 Measures Cost Product Q5 Product JØ Total Labor-related DLHS $191,748 70,536 295,592 Production orders 3,000 2,800 5,800 orders 300 500 800 Order size MHs 4,300 4,500 8,800 $557,876 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Cholce $36.23 per MH $68.48 per MH $96.19 per MH
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