Zee Corporation Has Provided the Following Data Concerning Its Overhead

question 28

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:

Total-Product Schedule

A table showing the output or total product resulting from various quantities of inputs or resources, used in production theory.

Marginal Revenue Product

The increase in revenue resulting from the utilization of one extra unit of a factor of production.

Resource

An economic or productive factor required to accomplish an activity or as means to undertake an enterprise and achieve desired outcome.

Marginal Revenue Product

The extra income produced by using an additional unit of a production input, like labor or capital.