1 answer

6 Fomer, Inc., manufactures and sells two products Product Z1 and Product Z8. The company has...

Question:

6 Fomer, Inc., manufactures and sells two products Product Z1 and Product Z8. The company has an activity based costing syste
6 Fomer, Inc., manufactures and sells two products Product Z1 and Product Z8. The company has an activity based costing system with the following activity Cout pools, activity measures, and expected activity: Expected Activity Activity Coat Pools Labor-related Machine setups Order size Activity Measures DLHS setups MH Estimated Overhead Coat $112, 190 40.440 609,770 $762,400 Product z1 600 500 3,000 Product 28 2,000 700 3,200 Total 2,600 1,200 6,200 The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to

Answers

The computation of activity rate for the Machine Setups activity cost pool is shown below:-

Answer $ 33.70 Activity Labor-related Machine Setups Order Size Estimated Overhead Product Zi Product Z8 Total $ 112,190.00 6

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