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 Measures Cost Product 05 Product J0 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 Production Orders activity cost pool under activity-based costing is closest to: Multiple Cholce $63.40 per order $68.74 per order $8817 per order
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 Measures Cost Product 05 Product J0 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 Production Orders activity cost pool under activity-based costing is closest to: Multiple Cholce $63.40 per order $68.74 per order $8817 per order
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product JO. The company has an actvity-based costing system with the following activity cost pools, activity measures, and
expected activity:
Estimated
Expected Activity
Activity
Overhead
Activity Cost Pools
Labor-related
Measures
Cost
Product 05
Product J0
Total
DLHS
$191,748
70,536
295,592
3,000
300
4,300
2,800
5,800
Production orders
Order size
orders
500
800
MHs
4,500
8,800
$557,876
The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:
Multiple Cholce
$63.40 per order
S6874 per order
S8817 per oroer
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