Ask Question
BusinessBusiness
4 April, 05:18

g Alphabet Co. uses activity-based costing. The company manufactures two products, Product A and Product B. There are three activity cost pools, with estimated costs and expected cost driver quantities as follows: Activity 1 cost pool has estimated overhead of $18,000. The expected cost driver quantity of Product A is 500 and Product B is 400. Activity 2 cost pool has estimated overhead of $21,000. The expected cost driver quantity is 1,000 for Product A and 500 for Product B. Activity 3 cost pool has estimated overhead of $32,000. The expected cost driver quantity is 300 for Product A and 200 for Product. What is the pool rate for Activity 1

+5
Answers (1)
  1. 4 April, 05:43
    0
    Activity 1 rate driver = $20 per driver

    Explanation:

    Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers.

    Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.

    Activity rate per driver is calculated as:

    Activity overhead for the period / Total cost drivers for the period

    Activity 1 overhead = $18,000

    Total expected cost drivers for activity 1 = 500 + 400 = 900

    Overhead rate per cost driver

    = $18,000/900 hours

    = $20 per driver
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “g Alphabet Co. uses activity-based costing. The company manufactures two products, Product A and Product B. There are three activity cost ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The growing integration of the world economy is: A. increasing the intensity of competition in a wide range of manufacturing and service industries. B.
Answers (1)
Ivanhoe Company sells office equipment on July 31, 2017, for $22,410 cash. The office equipment originally cost $81,920 and as of January 1, 2017, had accumulated depreciation of $37,600. Depreciation for the first 7 months of 2017 is $4,580.
Answers (1)
Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: Month Number of Cavities Filled Total Cost January 300 $5,000 February 650 6,050 March
Answers (1)
Workers at a local mining company are paid $25.60 per hour, and they have incorporated a 3 percent annual raise in their contracts to account for expected inflation.
Answers (2)
Bean, is analyzing the risk of each of the following options for expanding into a foreign market: 1. It could partner with Olé, a local bakery chain, to create a new company together (requiring Bean to manage a partner relationship). 2.
Answers (1)
New Questions in Business
Are schools officials immune from being sued?
Answers (1)
Assume an asset cost $72,800 and has a current book value of $42,760. The asset is sold today for $32,900 cash. The firm's tax rate is 21 percent. As a result of this sale, the firm's net cash flow: 1. will increase by more than $32,900. 2.
Answers (1)
Can a citizen of a state sue a different state
Answers (1)
If you do not have a Social Security number, you can apply for one. True Or False
Answers (2)
What is the most common workplace for people in the Finance cluster? A) a school B) at home C) an office D) a store
Answers (1)
Home » Business » g Alphabet Co. uses activity-based costing. The company manufactures two products, Product A and Product B.
Sign Up Forgot Password?