Triton, Inc., manufactures and sells two products: Product B8 and Product N3. The company has an activity- based costing system with the following activity cost pools, activity measures, and expected activity: Activity Pools Estimated Overhead Cost Expected Cost Activity Measures ($) Activity Product B8 Product Total N3 Labor-related DLHs $243,810 11,500 6,300 17,800 Production orders Orders $46,720 1,850 2,950 4,800 Order size MHs $196,560 9,400 8,200 17,600 $487,090 The activity rate for the Order Size activity cost pool under activity-based costing is A. $29.58 per MH B. $14.10 per MH C. $11.17 per MH D. $15.30 per MH

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
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Cost pool under activity based costing is

Triton, Inc., manufactures and sells two products: Product B8 and Product N3. The company has an activity-
based costing system with the following activity cost pools, activity measures, and expected activity:
Activity
Pools
Estimated Overhead Cost Expected
Cost Activity
Measures
($)
Activity
Product B8
Product
Total
N3
Labor-related
DLHs
$243,810
11,500
6,300
17,800
Production orders Orders
$46,720
1,850
2,950
4,800
Order size
MHs
$196,560
9,400
8,200
17,600
$487,090
The activity rate for the Order Size activity cost pool under activity-based costing is
A. $29.58 per MH B. $14.10 per MH C. $11.17 per MH D. $15.30 per MH
Transcribed Image Text:Triton, Inc., manufactures and sells two products: Product B8 and Product N3. The company has an activity- based costing system with the following activity cost pools, activity measures, and expected activity: Activity Pools Estimated Overhead Cost Expected Cost Activity Measures ($) Activity Product B8 Product Total N3 Labor-related DLHs $243,810 11,500 6,300 17,800 Production orders Orders $46,720 1,850 2,950 4,800 Order size MHs $196,560 9,400 8,200 17,600 $487,090 The activity rate for the Order Size activity cost pool under activity-based costing is A. $29.58 per MH B. $14.10 per MH C. $11.17 per MH D. $15.30 per MH
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