Strama, Incorporated, manufactures and sells two products: Product A6 and Product I5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product A6 Product I5 Total Labor-related DLHs $ 198,138 8,900 3,500 12,400 Production orders orders 48,124 1,250 1,450 2,700 Order size MHs 190,147 6,300 6,400 12,700 $ 436,409 The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
Strama, Incorporated, manufactures and sells two products: Product A6 and Product I5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product A6 Product I5 Total Labor-related DLHs $ 198,138 8,900 3,500 12,400 Production orders orders 48,124 1,250 1,450 2,700 Order size MHs 190,147 6,300 6,400 12,700 $ 436,409 The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Strama, Incorporated, manufactures and sells two products: Product A6 and Product I5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
| Activity Cost Pools | Activity Measures | Estimated Overhead Cost | Expected Activity | ||
|---|---|---|---|---|---|
| Product A6 | Product I5 | Total | |||
| Labor-related | DLHs | $ 198,138 | 8,900 | 3,500 | 12,400 |
| Production orders | orders | 48,124 | 1,250 | 1,450 | 2,700 |
| Order size | MHs | 190,147 | 6,300 | 6,400 | 12,700 |
| $ 436,409 |
The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
Transcribed Image Text:Multiple Choice
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$19.39 per MH
$56.61 per MH
$35.19 per MH
$14.97 per MH
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