Gerula,Inc. ,manufactures and sells two products: Product Z9 and Product Q6.The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity: The activity rate for the General Factory activity cost pool under activity-based costing is closest to:
A)$32.18 per MH
B)$93.07 per MH
C)$79.47 per MH
D)$28.90 per MH

Question

Gerula,Inc. ,manufactures and sells two products: Product Z9 and Product Q6.The company has an activity-based costing system with the following activity cost pools,activity measures,and expected activity:  The activity rate for the General Factory activity cost pool under activity-based costing is closest to:
A)$32.18 per MH 
B)$93.07 per MH 
C)$79.47 per MH 
D)$28.90 per MH

Quizplus · Accepted Answer

Activity rate = Estimated overhead cost ÷ Total expected activity
= $182,070 ÷ 6,300 MHs = $28.90 per MH