Use the Information Below to Answer the Following Question(s)

question 149

Multiple Choice

Use the information below to answer the following question(s) :
Martin Corporation manufactures two products-Plows and Harrows. The annual production and sales of Plows is 1,000 units, while 2,000 units of Harrows are produced and sold. The company has traditionally used direct labour hours to allocate its overhead to products. Plows require 5.0 direct labour hours per unit, while Harrows require 2.0 direct labour hours per unit. The total estimated overhead for the period is $603,500. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools:
Expected Activity

-The cost pool activity rate for Machining Costs would be closest to

• A) $223.52 per Machine hour.
• B) $198.53 per Machine hour.
• C) $125.00 per Machine hour.
• D) $37.50 per Machine hour.

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Definitions:

Identical Twins

Twins who develop from a single fertilized egg, sharing 100% of their genetic material and typically having very similar physical appearances.

Standardized IQ

A measure of an individual's intelligence relative to a large, normative population, based on a standardized intelligence quotient (IQ) test.

Scores Increasing

A phenomenon or outcome where numeric values, such as test scores or performance metrics, show an upward trend over time.

Flynn Effect

The observed rise over time in standardized intelligence test scores, named after James R. Flynn.