Schoeninger, Inc., manufactures and sells two products: Product X1 and Product I

Question

Schoeninger, Inc., manufactures and sells two products: Product X1 and Product I6. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:

$124.61 per DLH

$30.23 per DLH

$578.93 per DLH

$149.53 per DLH

Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product X1 Product I6 Total Labor-related DLHs $293,231 700 9,000 9,700 Machine setups setups 74,767 600 500 1,100 General factory MHs 268,830 4,300 4,400 8,700 $636,828

Explanation / Answer

Activity rate for the Labor-Related activity cost pool under activity-based costing is closest to $30.23 per DLH

Labour related overhead cost = $293231

Expected Activity (i.e. labour hours) = 9700

Cost per labour hour = $293231 / 9700 = $30.23

Hence the cost per DLH is $30.23

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

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