Blitzer Enterprises has identified three cost pools and three corresponding cost drivers to allocate overhead costs. The following estimates are provided for the coming year:
The accounting records show the Gergen Job consumed the following resources:
-If Blitzer Enterprises uses the three activity cost pools to allocate overhead costs,what are the activity-cost driver rates for the supervision of direct labor,machine maintenance,and facility rent,respectively?
A) $1.20 per direct labor hour, $0.50 per machine hour, $3.60 per sq ft
B) $2.50 per direct labor hour, $0.50 per machine hour, $1.00 per sq ft
C) $0.80 per direct labor hour, $0.10 per machine hour, $2.40 per sq ft
D) $0.60 per direct labor hour,$0.40 per machine hour,$2.60 per sq ft
Correct Answer:
Verified
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