Asked by
Matt Stephen Estorgio
on Oct 11, 2024
Verified
The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
A) $53.77 per DLH
B) $44.81 per DLH
C) $10.15 per DLH
D) $481.12 per DLH
Labor-Related
Pertaining to costs, activities, or issues directly connected with the workforce of a business, including wages, benefits, and productivity.
Activity Rate
The predetermined overhead rate used to allocate overhead costs based on specific activities or cost drivers.
Activity-Based Costing
A costing method that assigns overhead and indirect costs to related products and services based on the activities that consume resources.
- Gain an understanding of the core concepts and application of activity-based costing (ABC).
- Gain an understanding of how to distribute overhead costs using various activity drivers.
Verified Answer
CB
Learning Objectives
- Gain an understanding of the core concepts and application of activity-based costing (ABC).
- Gain an understanding of how to distribute overhead costs using various activity drivers.