Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 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 Labor-related Production orders Measures DLHS Cost $191,748 70,536 295,592 Product Q5 Product J0 2,800 Total 5,800 3,000 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 < Prev 7 of 36 Next >
Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 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 Labor-related Production orders Measures DLHS Cost $191,748 70,536 295,592 Product Q5 Product J0 2,800 Total 5,800 3,000 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 < Prev 7 of 36 Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:TB MC Qu. 4-94 Vanvalkenburg, Inc., manufactures and...
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
< Prev
7 of 36
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