Zee Corporation Has Provided the Following Data Concerning Its Overhead

question 52

Multiple Choice

Zee Corporation has provided the following data concerning its overhead costs for the coming year: The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming year: The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization-sustaining costs. The distribution of resource consumption across activity cost pools is given below: The activity rate for the Assembly activity cost pool is closest to:

• A)$2.70 per labor-hour
• B)$4.25 per labor-hour
• C)$4.05 per labor-hour
• D)$8.10 per labor-hour

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Definitions:

Writing

The act or process of producing and recording words in a form that can be read, understood, and preserved, often used legally to refer to the embodiment of agreements or contracts on a tangible medium.

Computers

Electronic devices that execute commands from software to perform a wide range of functions, from basic calculations to complex data processing.

Ordinary Care

The level of care that a reasonably prudent person would exercise in similar circumstances; a standard for negligence determination.

Reasonable Care

The degree of caution and concern an ordinarily prudent person would use in similar circumstances, often used as a standard for determining negligence.