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

question 48

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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
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 overhead cost per harrow using an activity-based costing system would be closest to A)  $127.17. B)  $635.83. C)  $301.75. D)  $67.05.
-The overhead cost per harrow using an activity-based costing system would be closest to


Definitions:

Motor Information

Motor Information refers to data or signals related to the control of muscle movements, including those directed from the brain to various parts of the body to initiate action.

Spinal Cord

A long, thin, tubular bundle of nervous tissue and support cells that extends from the brain, forming the central part of the nervous system and connecting the brain to the body.

Schwann Cells

Neuroglial cells whose cell membrane coats the axons.

Myelin

A fatty substance that forms a sheath around the axons of many neurons, serving as insulation and speeding up the transmission of nerve impulses.

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