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 General Overhead?
A) $4.00 per direct labor hour
B) $60.00 per direct labor hour
C) $6.67 per direct labor hour
D) $10.00 per direct labor hour

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 General Overhead?
A) $4.00 per direct labor hour 
B) $60.00 per direct labor hour 
C) $6.67 per direct labor hour 
D) $10.00 per direct labor hour

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 General Overhead?
A) $4.00 per direct labor hour 
B) $60.00 per direct labor hour 
C) $6.67 per direct labor hour 
D) $10.00 per direct labor hour

Miramar Industries Manufactures Two Products, a and B