Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products B56Z and D32N.Activity Cost PoolActivity MeasureTotal CostTotal ActivityMachiningMachine-hours$330,00015,000MHsMachine setupsNumber of setups$50,000100setupsProduct designNumber of products$88,0002productsOrder sizeDirect labor-hours 280,00010,000DLHsActivity MeasureProduct B56ZProduct D32NMachine-hours6,0009,000Number of setups8020Number of products11Direct labor-hours6,0004,000What is the activity rate for the Machine Setups activity cost pool?
A. $3.33 per setup
B. $2,500.00 per setup
C. $500.00 per setup
D. $625.00 per setup
Answer: C
You might also like to view...
Daget Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $364,140. At the end of the year, actual direct labor-hours for the year were 24,000 hours, manufacturing overhead for the year was overapplied by $8,060, and the actual manufacturing overhead was $359,140. The predetermined overhead rate for the year must have been closest to:
A. $15.43 per direct labor-hour B. $14.96 per direct labor-hour C. $15.17 per direct labor-hour D. $15.30 per direct labor-hour
Which of the following is true of nonprofit corporations?
A) They include hospitals, educational institutions, and charities, but exclude religious groups. B) They are always privately held corporations that are created for charitable and benevolent purposes. C) They are used by groups to carry out transactions and own property without individuals being held liable. D) In legal papers, they are referred to as Subchapter S corporations.
The form of business organization that comprises about 18 percent of all businesses in the United States is the
A. joint venture. B. syndicate. C. sole proprietorship. D. partnership. E. corporation.
Tayler is an engineer at an assembly plant for an auto company. Tayler receives orders from and reports to both his department manager and his project manager. This violates Fayol's principle of
A. division of authority and responsibility. B. line of authority. C. unity of command. D. unity of direction. E. centralization.