Vertex Manufacturing, Inc., manufactures and sells two products: Product X7 and Product Y8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Estimated Measures Overhead Expected Activity Product Product Total X7 Y8 Cost ($) Labor- DLHS $210,500 9,000 4,000 5,000 9,000 related Production Orders $53,300 1,200 500 700 1,200 orders Order size MHs $250,000 10,500 5,200 5,300 10,500 Total $513,800 What is the activity rate for the Order Size activity cost pool under activity-based costing?

Vertex Manufacturing, Inc., manufactures and sells two products: Product X7 and Product Y8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Estimated Measures Overhead Expected Activity Product Product Total X7 Y8 Cost ($) Labor- DLHS $210,500 9,000 4,000 5,000 9,000 related Production Orders $53,300 1,200 500 700 1,200 orders Order size MHs $250,000 10,500 5,200 5,300 10,500 Total $513,800 What is the activity rate for the Order Size activity cost pool under activity-based costing?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...

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