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Activities and Activity Measures Expected Activity Estimated Overhead Costs Product 1 Product 2 Hand-processing (direct labor-hours) $ 320,000 45,000 55,000 Setting up equipment (number of setups) 150,000 9,000 21,000 Administering parts inventories (number of part types)  30,000 110 90   $ 500,000       Transformation Corporation has provided the information set forth above regarding the overhead to be allocated between the two products it produces: CDE and EFG. What is the activity rate for the hand-processing units activity?   multiple choice $3.20 per setup Incorrect $5.00 per setup $150.00 per part-type $3.20 per direct labor-hour

Activities and Activity Measures Expected Activity Estimated Overhead Costs Product 1 Product 2 Hand-processing (direct labor-hours) $ 320,000 45,000 55,000 Setting up equipment (number of setups) 150,000 9,000 21,000 Administering parts inventories (number of part types)  30,000 110 90   $ 500,000       Transformation Corporation has provided the information set forth above regarding the overhead to be allocated between the two products it produces: CDE and EFG. What is the activity rate for the hand-processing units activity?   multiple choice $3.20 per setup Incorrect $5.00 per setup $150.00 per part-type $3.20 per direct labor-hour

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...
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Activities and Activity Measures Expected Activity
Estimated Overhead Costs Product 1 Product 2
Hand-processing (direct labor-hours) $ 320,000 45,000 55,000
Setting up equipment (number of setups) 150,000 9,000 21,000
Administering parts inventories (number of part types)  30,000 110 90
  $ 500,000    

 

Transformation Corporation has provided the information set forth above regarding the overhead to be allocated between the two products it produces: CDE and EFG. What is the activity rate for the hand-processing units activity?

 

multiple choice

  • $3.20 per setup Incorrect
  • $5.00 per setup
  • $150.00 per part-type
  • $3.20 per direct labor-hour

 

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