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


Definitions:

Indirect Labor

Labor costs associated with workers who are not directly involved in the production of goods or services, such as maintenance staff and supervisors.

Factory Overhead

The costs associated with manufacturing operations that are not directly traceable to a product, including costs related to the maintenance and operation of the factory.

Operating Expenses

Costs related to the day-to-day functioning of a business, excluding the cost of production.

Product Costs

The costs directly associated with the production of goods, including raw materials, labor, and manufacturing overhead.

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