Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows:

Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information:

Under the revised ABC system, the activity-cost driver rate for the supervision activity is ________.
A) $1.70
B) $2.70
C) $2.16
D) $1.2

Question

Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows:

Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information:

Under the revised ABC system, the activity-cost driver rate for the supervision activity is ________.
A) $1.70 
B) $2.70 
C) $2.16 
D) $1.2

Quizplus · Accepted Answer

$97,200 / (45,000 dlh + 36,000 dlh) = $1.2 per dlh

Tiger Pride Produces Two Product Lines: T-Shirts and Sweatshirts