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:

Eyewear

Items worn over the eyes for protection or correction, including glasses, goggles, and sunglasses.

Droplet Precautions

Infection control measures designed to prevent the spread of diseases transmitted by respiratory droplets, such as influenza or meningitis.

Streptococcal Pharyngitis

An infection of the throat caused by Streptococcus bacteria, commonly known as strep throat.

Pulmonary TB

Tuberculosis that affects the lungs, characterized by symptoms such as a persistent cough, weight loss, and fever, requiring long-term antibiotic treatment.