The activity rate for the General Factory activity cost pool under activity-based costing is closest to:
A)$36.23 per MH
B)$68.48 per MH
C)$96.19 per MH
D)$33.59 per MH

Question

Quizplus · Accepted Answer

Activity rate = Estimated overhead cost ÷ Total expected activity
= $295,592 ÷ 8,800 MHs = $33.59 per MH
Reference: CH04-Ref4
Weirick, Inc., manufactures and sells two products: Product T8 and Product P4.The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: 11ea7998_5ea3_1f69_911b_97c717bbbb4d_TB2627_00_TB2627_00

The Activity Rate for the General Factory Activity Cost Pool