For Its Inspecting Cost Pool, Ellsworth, Inc

question 28

Multiple Choice

For its inspecting cost pool, Ellsworth, Inc. expected overhead cost of $400,000 and 4,000 inspections. The actual overhead cost for that cost pool was $480,000 for 5,000 inspections. The activity-based overhead rate used to assign the costs of the inspecting cost pool to products is

• A) $80 per inspection.
• B) $96 per inspection.
• C) $100 per inspection.
• D) $120 per inspection.

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Definitions:

First Discovery

The initial identification or observation of a phenomenon, principle, or resource, marking a seminal moment in the expansion of knowledge or exploration.

Invention

The creation of a new product, process, or method that has not existed before, often protected by patents.

Specialty Restaurants

Restaurants that focus on a specific type of cuisine or dining experience, offering unique and specialized menu items.

Diffusion

Diffusion in the context of business and technology refers to the spread of a product, innovation, or idea through a population or market over time.