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

question 139

Multiple Choice

Mciver 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: Machining, $10, 900;Order Filling, $10, 500;and Other, $75, 600.Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders.The costs in the Other activity cost pool are not assigned to products.Activity data appear below: The activity rate for the Machining activity cost pool under activity-based costing is closest to:

• A)$2.67 per MH
• B)$1.09 per MH
• C)$0.93 per MH
• D)$9.70 per MH

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Definitions:

Written Contract

A legally binding agreement between two or more parties that is put in writing and signed by the parties involved.

Installments

Regular partial payments made over a period of time to settle a debt or purchase price, rather than paying the total amount at once.

Proceeds

The total amount of money or assets derived from a transaction or event, often used in the context of sales and financings.

Monthly Payments

Regular payments made every month towards the repayment of a loan, mortgage, or other financial obligation.