Nile Corp Has Identified Three Cost Pools to Allocate Overhead Costs

question 71

Multiple Choice

Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:

The accounting records show the Mossman Job consumed the following resources:

If Nile Corp. uses the three activity cost pools to allocate overhead costs, what are the activity-cost driver rates for supervision of direct labor, machine maintenance, and facility rent, respectively?

• A) $0.60 per dlh; $0.16 per mh; $1.70 per sq ft
• B) $1.67 per dlh; $6.25 per mh; $0.56 per sq ft
• C) $0.60 per dlh; $0.16 per mh; $1.80 per sq ft
• D) $0.50 per dlh; $0.16 per mh; $1.88 per sq ft

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Definitions:

Liability

The condition of having legal accountability, especially regarding debts or legal duties.

Control

The power to direct the management and policies of a company or organization, often through ownership of a majority of shares.

Expansion

Expansion refers to the process of growing or enlarging the scale, scope, or reach of something, such as a business, territory, or concept.

Limited Partnership

A partnership formed by two or more persons having one or more general partners and one or more limited partners.