The Moving Activity of Alpha Inc

question 34

Multiple Choice

The moving activity of Alpha Inc.has an expected cost of $200,000.Expected direct labor hours are 50,000, and the expected number of moves is 90,000.What is the best activity rate for moving? (Note: Round answer to two decimal places.)

• A) $4.50 per move
• B) $1.33 per move
• C) $4.30 per move
• D) $2.22 per move

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Definitions:

Temporary Accounts

Accounts that are closed to the owner's equity account at the end of the accounting period.

Closing

The process of finalizing accounts at the end of an accounting period, leading to the preparation of financial statements.

Real Accounts

Accounts that represent assets, liabilities, and equity of a business and carry their balances permanently across accounting periods.

Accounting Period

The time span during which financial activities are recorded and reported, commonly a fiscal year or quarter.