McCaskey Corporation uses an activity-based costing system with the following th

Question

McCaskey Corporation uses an activity-based costing system with the following three activity cost pools: The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: The distribution of resource consumption across activity cost pools is given below: The activity rate for the Fabrication activity cost pool is closest to: A. $1.65 per machine-hour B. $4.00 per machine-hour C. $0.80 per machine-hour D. $2.40 per machine-hour

Explanation / Answer

Ans;

420000*5%+100000*15%+120000*25%
21000+15000+30000=$66000

machine hours=40000
activity rate=66000/40000=$1.65

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---