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

question 19

Multiple Choice

Sibble 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, $12,400; Supervising, $4,400; and Other, $5,200. 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 Supervising activity cost pool under activity-based costing is closest to:

• A)$1.33 per batch
• B)$11.00 per batch
• C)$1.00 per batch
• D)$2.20 per batch

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Definitions:

Sample Size

The number of observations or datapoints collected in a sample, which is a subset of the population being studied.

Population Mean

The average or central value of all the numbers in a population.

Standard Deviation

A statistic that quantifies the dispersion or variability of a distribution, calculated as the square root of the variance.

Confidence Interval

A set of values, derived from analyzing sample data, likely to cover the value of an unknown parameter within a population.