Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 7 - Activity-Based Costing: A Tool to Aid Decision Making - The Foundational 15 - Required - Page 318: 6

Answer

$25 per DLH

Work Step by Step

The activity rate for the Product Design activity cost pool = Estimated Overhead Cost ÷ Expected Activity = 300,000 ÷ 12,000 DLH = $25 per DLH
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