Miramar Industries manufactures two products, A and B. The manufacturing operation involves three overhead activities - production setup, material handling, and general factory activities. Miramar uses activity-based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities: Each product's total activity in each of the three areas are as follows:
What is the activity rate for Material Handling?
A) $1.50 per part
B) $3.75 per part
C) $7.50 per part
D) $2.50 per part

Question

Miramar Industries manufactures two products, A and B. The manufacturing operation involves three overhead activities - production setup, material handling, and general factory activities. Miramar uses activity-based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities:  Each product's total activity in each of the three areas are as follows:
 What is the activity rate for Material Handling?
A) $1.50 per part 
B) $3.75 per part 
C) $7.50 per part 
D) $2.50 per part

Quizplus · Accepted Answer

The Answer of Miramar Industries manufactures two products, A and B. The manufacturing operation involves three overhead activities - production setup, material handling, and general factory activities. Miramar uses activity-based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities:  Each product's total activity in each of the three areas are as follows:
 What is the activity rate for Material Handling?
A) $1.50 per part 
B) $3.75 per part 
C) $7.50 per part 
D) $2.50 per part

Miramar Industries Manufactures Two Products, a and B