Forner, Inc
Subject:AccountingPrice:2.84 Bought4
Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
| Estimated | Expected Activity | |||||
| Activity Cost Pools | Activity Measures | Overhead Cost | Product Z1 | Product Z8 | Total | |
| Labor-related | DLHs | $ | 127,500 | 3,600 | 1,800 | 5,400 |
| Machine setups | setups | 60,110 | 700 | 400 | 1,100 | |
| Order size | MHs | 940,160 | 4,000 | 3,100 | 7,100 | |
| $ | 1,127,770 | |||||
The activity rate for the Order Size activity cost pool under activity-based costing is closest to:
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$57.82 per MH
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$210.67 per MH
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$140.88 per MH
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$132.42 per MH
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