Sibble Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $12,400; Supervising, $4,400; and Other, $5,200. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:
-The activity rate for the Supervising activity cost pool under activity-based costing is closest to:
A)$1.33 per batch
B)$11.00 per batch
C)$1.00 per batch
D)$2.20 per batch

Question

Sibble Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $12,400; Supervising, $4,400; and Other, $5,200. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: 
-The activity rate for the Supervising activity cost pool under activity-based costing is closest to:
A)$1.33 per batch 
B)$11.00 per batch 
C)$1.00 per batch 
D)$2.20 per batch

Quizplus · Accepted Answer

Supervising: $4,400 F1F1F1S1F1F1F10 2,000 batches = $2.20 per batch

Sibble Corporation Uses Activity-Based Costing to Assign Overhead Costs to Products