In Activity-Based Costing, the Activity Rate for an Activity Cost

question 210

Multiple Choice

In activity-based costing, the activity rate for an activity cost pool is computed by dividing the total overhead cost in the activity cost pool by:

• A) the direct labor-hours required by the product.
• B) the machine-hours required by the product.
• C) the total activity for the activity cost pool.
• D) the total direct labor-hours for the activity cost pool.

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