Chrzan, Incorporated, manufactures and sells two products: Product EO and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Total Direct Labor- Hours 4,141 14,105 18,246 Product E Product Ne Total direct labor-hours. Activity Cost Pools The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost Labor-related Production orders Order size Multiple Choice O O $33.94 per MH $54.20 per MH Direct Expected Labor-Hours Production 410 1,550 $51.98 per MH The activity rate for the Order Size activity cost pool under activity-based costing is closest to: $21.40 per MH Activity Measures Per Unit 10.1 9.1 DLHS orders MHS $ 301,890 61,087 585,366 $948,343 Product E 4,141 850 5,550 Expected Activity Product Ne 14,105 950 5,250 Total 18,246 1,800 10,800

Chrzan, Incorporated, manufactures and sells two products: Product EO and Product NO. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Total Direct Labor- Hours 4,141 14,105 18,246 Product E Product Ne Total direct labor-hours. Activity Cost Pools The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Overhead Cost Labor-related Production orders Order size Multiple Choice O O $33.94 per MH $54.20 per MH Direct Expected Labor-Hours Production 410 1,550 $51.98 per MH The activity rate for the Order Size activity cost pool under activity-based costing is closest to: $21.40 per MH Activity Measures Per Unit 10.1 9.1 DLHS orders MHS $ 301,890 61,087 585,366 $948,343 Product E 4,141 850 5,550 Expected Activity Product Ne 14,105 950 5,250 Total 18,246 1,800 10,800

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...

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