TB MC Qu. 4-24 (Static) Privott, Incorporated, manufactures... Privott, Incorporated, manufactures and sells two products: Product Z9 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 $ 324,018 Expected Activity Activity Cost Pools Activity Measures Product Z9 Product NO Total Labor-related DLHS Product testing tests Order size MHs 45,747 471,108 6,400 400 3,000 9,400 500 900 4,000 4,300 8,300 $ 840,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: Multiple Choice $91.49 per DLH $934.30 per DLH $114.37 per DLH

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 8CE: Electan Company produces two types of printers. The company uses ABC, and all activity drivers are...
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TB MC Qu. 4-24 (Static) Privott, Incorporated, manufactures...
Privott, Incorporated, manufactures and sells two products: Product Z9 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
$ 324,018
Expected Activity
Activity Cost Pools
Activity
Measures
Product Z9 Product NO
Total
Labor-related
DLHS
Product testing
tests
Order size
MHs
45,747
471,108
6,400
400
3,000
9,400
500
900
4,000
4,300
8,300
$ 840,873
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
Multiple Choice
$91.49 per DLH
$934.30 per DLH
$114.37 per DLH
Transcribed Image Text:TB MC Qu. 4-24 (Static) Privott, Incorporated, manufactures... Privott, Incorporated, manufactures and sells two products: Product Z9 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 $ 324,018 Expected Activity Activity Cost Pools Activity Measures Product Z9 Product NO Total Labor-related DLHS Product testing tests Order size MHs 45,747 471,108 6,400 400 3,000 9,400 500 900 4,000 4,300 8,300 $ 840,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: Multiple Choice $91.49 per DLH $934.30 per DLH $114.37 per DLH
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