Asked by Estefania Carlos on Jul 06, 2024
Verified
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
A) $43.15 per DLH
B) $635.33 per DLH
C) $57.77 per DLH
D) $80.88 per DLH
Labor-Related
Pertains to issues, costs, or statistics connected with the workforce or employees of a company.
Activity Rate
In cost accounting, the rate charged for a particular business activity, often used in activity-based costing to allocate costs to products or services.
Activity-Based Costing
A costing method that assigns overhead and indirect costs to specific activities, providing a more precise understanding of product or service costs.
- Acquire knowledge on the principles and use of activity-based costing (ABC).
- Acquire knowledge on distributing overhead costs by employing distinct activity drivers.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
A
Explanation :
Activity rate = Estimated overhead cost ÷ Total expected activity
= $112,190 ÷ 2,600 DLHs = $43.15 per DLH
= $112,190 ÷ 2,600 DLHs = $43.15 per DLH
Learning Objectives
- Acquire knowledge on the principles and use of activity-based costing (ABC).
- Acquire knowledge on distributing overhead costs by employing distinct activity drivers.