Author Question: Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are ... (Read 104 times)

jeatrice · **on:** Mar 6, 2021

Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:

Cost Pool

Overhead Costs

Cost driver

Activity level

Supervision of direct labor

$474,000

Direct labor-hours

790,000

Machine maintenance

$147,200

Machine-hours

920,000

Facility rent

$243,000

Square feet of area

135,000

Total overhead costs

$864,200

The accounting records show the Mossman Job consumed the following resources:

Cost driver

Actual level

Direct labor-hours

240

Machine-hours

1,700

Square feet of area

50

If Nile Corp. uses the three activity cost pools to allocate overhead costs, what are the activity-cost driver rates for supervision of direct labor, machine maintenance, and facility rent, respectively?
◦ $0.60 per dlh; $0.16 per mh; $1.70 per sq ft
◦ $1.67 per dlh; $6.25 per mh; $0.56 per sq ft
◦ $0.60 per dlh; $0.16 per mh; $1.80 per sq ft
◦ $0.50 per dlh; $0.16 per mh; $1.88 per sq ft

emily12345 · **Reply #1 on:** Mar 6, 2021

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