Umanzor Corporation Uses Activity-Based Costing to Assign Overhead Costs to Products

question 66

Multiple Choice

Umanzor Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $42,700; Supervising, $26,900; and Other, $17,400. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:
-The activity rate for the Processing activity cost pool under activity-based costing is closest to:

• A)$4.27 per MH
• B)$3.95 per MH
• C)$4.57 per MH
• D)$8.70 per MH

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Definitions:

Disease

A state where an organism's normal functioning is disturbed, typically resulting in specific symptoms and signs.

Treatment

Medical care provided to a patient for an illness or injury, aimed at curing, relieving, or managing symptoms.

One-millionth

A fractional unit representing one part in a million of anything.

Gram

A metric unit of mass equal to one thousandth of a kilogram.