anvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product J0. The company has...
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anvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product J0. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated
Expected Activity
Activity Cost Pools
Activity Measures
Overhead Cost
Product Q5
Product J0
Total
Labor-related
DLHs
$
191,748
3,000
2,800
5,800
Production orders
orders
70,536
300
500
800
Order size
MHs
295,592
4,300
4,500
8,800
$
557,876
The activity rate for the Production Orders activity cost pool under activity-based costing is closest to:
Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated
Expected Activity
Activity Cost Pools
Activity Measures
Overhead Cost
Product Z1
Product Z8
Total
Labor-related
DLHs
$
112,190
600
2,000
2,600
Machine setups
setups
40,440
500
700
1,200
Order size
MHs
609,770
3,000
3,200
6,200
$
762,400
The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to:
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