In correspondence to SLOAT question number 3a. Apply manufacturing overhead to e

Question

In correspondence to SLOAT question number 3a.

Apply manufacturing overhead to each of several jobs using both a single overhead-rate approach and an activity-based-costing approach, and explain the advantages and disadvantages of the latter, as compared to the former.

Use the following information to answer the following TWO questions:

Acton Company has two products: A and B. The annual production and sales of Product A is 800 units and of Product B is 500 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and General Factory--with estimated overhead costs and expected activity as follows:



1) The predetermined overhead rate under the traditional single-rate costing system is closest to: (Points : 5) A. $ 37.46.
B. $ 21.60.
C. $ 13.17.
D. $ 53.68.

Explanation / Answer

D

C

A

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.