In the second stage, Machining costs are assigned to products using machine-hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: Product C9 Product UO MHS (Machining) Orders (Order Filling) 200 800 6,900 3,100 Total 10,000 1,000 The activity rate for the Machining activity cost pool under activity-based costing is closest to: Select one: O a $2.82 per MH O b. $5.30 per MH Oc. $3.18 per MH O d. $18.00 per MH

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...
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Walsh Corporation uses an activity-based costing system to assign overhead costs to products. In the first stage, two overhead costs-
equipment depreciation and supervisory expense-are allocated to three activity cost pools--Mach g. Order Filling, and Other-based
on resource consumption. Data to perform these allocations appear below:
Overhead costs:
Equipment depreciation $47,000
Supervisory expense
Distribution of Resource
Equipment depreciation
Supervisory expense
$6,000
Consumption Across Activity Cost Pools:
Activity:
Activity Cost Pools
Machining Order Filling Other
0.60
0.30
0.60
0.20
0.10
0.20
In the second stage, Machining costs are assigned to products using machine-hours (MHS) and Order Filling costs are assigned to
products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the
company's two products follow:
MHS (Machining) Orders (Order Filling)
n
Transcribed Image Text:Walsh Corporation uses an activity-based costing system to assign overhead costs to products. In the first stage, two overhead costs- equipment depreciation and supervisory expense-are allocated to three activity cost pools--Mach g. Order Filling, and Other-based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation $47,000 Supervisory expense Distribution of Resource Equipment depreciation Supervisory expense $6,000 Consumption Across Activity Cost Pools: Activity: Activity Cost Pools Machining Order Filling Other 0.60 0.30 0.60 0.20 0.10 0.20 In the second stage, Machining costs are assigned to products using machine-hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: MHS (Machining) Orders (Order Filling) n
In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to
products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the
company's two products follow:
Activity:
MHS (Machining) Orders (Order Filling)
6,900
200
3,100
800
Total
10,000
1,000
The activity rate for the Machining activity cost pool under activity-based costing is closest to:
Product C9
Product UO
Select one:
O a $2.82 per MH
Ob. $5.30 per MH
Oc $3.18 per MH
O d. $18.00 per MH
Transcribed Image Text:In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: MHS (Machining) Orders (Order Filling) 6,900 200 3,100 800 Total 10,000 1,000 The activity rate for the Machining activity cost pool under activity-based costing is closest to: Product C9 Product UO Select one: O a $2.82 per MH Ob. $5.30 per MH Oc $3.18 per MH O d. $18.00 per MH
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