Barkes, Incorporated, manufactures and sells two products: Product B0 and Product B5. Data concerning the...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Barkes, Incorporated, manufactures and sells two products: Product B0 and Product B5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
Expected Production
Direct Labor-Hours Per Unit
Total Direct Labor-Hours
Product B0
400
7.0
2,800
Product B5
500
4.0
2,000
Total direct labor-hours
4,800
The direct labor rate is $22.10 per DLH. The direct materials cost per unit is $288.10 for Product B0 and $118.90 for Product B5.
The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Activity Cost Pools
Activity Measures
Estimated Overhead Cost
Expected Activity
Product B0
Product B5
Total
Labor-related
DLHs
$ 136,944
2,800
2,000
4,800
Production orders
orders
64,629
500
400
900
Order size
MHs
588,294
3,300
3,000
6,300
$ 789,867
The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
Multiple Choice
$164.56 per MH
$68.47 per MH
$65.82 per MH
$93.38 per MH
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
