TB MC Qu. 4-24 (Static) Privott, Incorporated, manufactures... Privott, Incorporated, manufactures and sells two products: Product 29 and Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity. Estimated Overhead Cost Activity Cost Pools Labor-related Product testing Order size Multiple Choice $91.49 per DLH $934.30 per DLH The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: $114.37 per DLH Activity Measures DLHS tests MHs $34.47 per DLH $ 324,018 45,747 471,108 $ 840,873 Expected Activity Product No 3,000 500 4,300 Product 29 6,400 400 4,000 Total 9,400 900 8,300
TB MC Qu. 4-24 (Static) Privott, Incorporated, manufactures... Privott, Incorporated, manufactures and sells two products: Product 29 and Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity. Estimated Overhead Cost Activity Cost Pools Labor-related Product testing Order size Multiple Choice $91.49 per DLH $934.30 per DLH The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: $114.37 per DLH Activity Measures DLHS tests MHs $34.47 per DLH $ 324,018 45,747 471,108 $ 840,873 Expected Activity Product No 3,000 500 4,300 Product 29 6,400 400 4,000 Total 9,400 900 8,300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Haradev
Transcribed Image Text:TB MC Qu. 4-24 (Static) Privott, Incorporated, manufactures...
Privott, Incorporated, manufactures and sells two products: Product 29 and Product NO. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity.
Activity Cost Pools
Labor-related
Product testing
Order size
Multiple Choice
$91.49 per DLH
$934.30 per DLH
$114.37 per DLH
Activity
Measures
DLHs
tests
MHs
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
$34.47 per DLH
Estimated
Overhead
Cost
$ 324,018
45,747
471,108
$ 840,873
Expected Activity
Product Z9 Product No
6,400
3,000
500
400
4,000
4,300
Total
9,400
900
8,300
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