Answer the Following Questions Using the Information Below:
Nile Corp

question 116

Multiple Choice

Answer the following questions using the information below:
Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
$$\begin{array} { l r l r } \text { Cost Pool } & \text { Overhead Costs } & \text { Cost driver } & \text { Activity level } \\\text { Supervision of direct labor } & \$ 380,000 & \text { Direct labor-hours } & 760,000 \\\text { Machine maintenance } & \$ 120,000 & \text { Machine-hours } & 960,000 \\\text { Facility rent } & \$ 200,000 & \text { Square feet of area } & 125,000 \\\text { Total overhead costs } & \$ 640,000 & &\end{array}$$ The accounting records show the Mossman Job consumed the following resources:
$\begin{array}{ll}\text { Cost driver } & \text { Actual level } \\\text { Direct labor-hours } & 200 \\\text { Machine-hours } & 1,600 \\\text { Square feet of area } & 50\end{array}$
-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) $0.50 per dlh; $0.125 per mh; $1.50 per sq ft
• B) $1.25 per dlh; $0.25 per mh; $1.67 per sq ft
• C) $0.50 per dlh; $0.125 per mh; $1.60 per sq ft
• D) $0.40 per dlh; $0.125 per mh; $1.68 per sq ft

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Definitions:

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Quantities of extractable oil from the earth, estimated based on geological and engineering data, indicating potential resources for future exploitation.

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A weapon of mass destruction that releases its destructive energy through nuclear reactions of fission or fusion, causing significant devastation and loss of life.

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Organic compounds composed entirely of hydrogen and carbon, commonly found in fossil fuels and used as a primary energy source.