In Activity-Based Costing, the Total Activity in an Activity Cost

question 182

Multiple Choice

In activity-based costing, the total activity in an activity cost pool can be computed by:

• A)dividing the total overhead cost in the activity cost pool by the activity cost pool's activity rate.
• B)multiplying the total overhead cost in the activity cost pool by the activity cost pool's activity rate.
• C)dividing the activity cost pool's activity rate by the direct labor-hours required to make a product.
• D)multiplying the activity cost pool's activity rate by the direct labor-hours required to make a product.

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