For Its Inspecting Cost Pool, Davidson, Inc

question 146

Multiple Choice

For its inspecting cost pool, Davidson, Inc.expected overhead cost of $300,000 and 4,000 inspections.The actual overhead cost for that cost pool was $360,000 for 5,000 inspections.The activity-based overhead rate used to assign the costs of the inspecting cost pool to products is

• A)$60 per inspection.
• B)$72 per inspection.
• C)$75 per inspection.
• D)$90 per inspection.

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Definitions:

Site Visit

The process of traveling to a location to review, inspect, or perform work as part of a project, assessment, or evaluation.

Staffing Test Team

A staffing test team involves the process of recruiting and organizing professionals tasked with testing products, software, or systems for bugs, performance issues, and other quality criteria.

Preparing Test Materials

The process of creating and organizing assessments, quizzes, or exams to evaluate knowledge or skills.

Representative Users

Individuals selected to typify or stand in for the broader user base in usability testing or research.