Glassey Corporation Uses Activity-Based Costing to Assign Overhead Costs to Products.Overhead

question 129

Multiple Choice

Glassey 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, $20, 000;Supervising, $33, 500;and Other, $16, 500.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)$2.50 per MH
• B)$2.00 per MH
• C)$7.00 per MH
• D)$1.95 per MH

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