Nile CorpHas Identified Three Cost Pools to Allocate Overhead Costs

question 175

Multiple Choice

Nile Corp.has identified three cost pools to allocate overhead costs.The following estimates are provided for the coming year:

The accounting records show the Mossman Job consumed the following resources:

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)$0.60 per dlh;$0.16 per mh;$1.70 per sq ft
• B)$1.67 per dlh;$6.25 per mh;$0.56 per sq ft
• C)$0.60 per dlh;$0.16 per mh;$1.80 per sq ft
• D)$0.50 per dlh;$0.16 per mh;$1.88 per sq ft

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Definitions:

Short Oil Futures

A speculative strategy involving the sale of oil futures contracts in anticipation of oil prices falling, intending to buy back at a lower price.

Long Steel Futures

Financial contracts to buy steel at a predetermined price at a specified time in the future, often used as a hedge against price fluctuations.

Shorting Index Futures

A strategy involving selling index futures contracts in anticipation of a decline in the index's value to profit from falling market prices.

Foreign Currency

The currency of another country that is required to conduct foreign trade and business transactions.