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:

Thioridazine

An antipsychotic medication formerly used to treat schizophrenia and other severe mental health conditions, but less common due to safety concerns.

Sertraline

An antidepressant medication used to treat a variety of conditions, including depression, anxiety disorders, and certain phobias.

Olanzapine

A medication primarily used to treat schizophrenia and bipolar disorder by affecting certain substances in the brain.

Lithium

A chemical element used primarily in psychiatric medication to treat mood disorders like bipolar disorder.