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For Its Inspecting Cost Pool, Ellsworth, Inc

Question 64

Multiple Choice

For its inspecting cost pool, Ellsworth, Inc. expected overhead cost of $400,000 and 4,000 inspections. The actual overhead cost for that cost pool was $480,000 for 5,000 inspections. The activity-based overhead rate used to assign the costs of the inspecting cost pool to products is


A) $80 per inspection.
B) $96 per inspection.
C) $100 per inspection.
D) $120 per inspection.

Correct Answer:

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