Use the following information to answer the following questions.Magnolia Company makes products B546 and C245.Information for overhead costs and for the two products appears below.The company makes 100,000 units of product B546 each year and 20,000 units of product C245.

Use the information from the Magnolia Company and assume that Activity Based Costing is used,with each activity in its own cost pool.What is the rate per inspection that should be used to assign inspection cost to the two products?
A)$8 per inspection
B)$40 per inspection
C)$36 per inspection
D)$400,000 per inspection

Question

Use the following information to answer the following questions.Magnolia Company makes products B546 and C245.Information for overhead costs and for the two products appears below.The company makes 100,000 units of product B546 each year and 20,000 units of product C245.

Use the information from the Magnolia Company and assume that Activity Based Costing is used,with each activity in its own cost pool.What is the rate per inspection that should be used to assign inspection cost to the two products?
A)$8 per inspection 
B)$40 per inspection 
C)$36 per inspection 
D)$400,000 per inspection

Quizplus · Accepted Answer

The Answer of Use the following information to answer the following questions.Magnolia Company makes products B546 and C245.Information for overhead costs and for the two products appears below.The company makes 100,000 units of product B546 each year and 20,000 units of product C245.

Use the information from the Magnolia Company and assume that Activity Based Costing is used,with each activity in its own cost pool.What is the rate per inspection that should be used to assign inspection cost to the two products?
A)$8 per inspection 
B)$40 per inspection 
C)$36 per inspection 
D)$400,000 per inspection

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