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Author Question: Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are ... (Read 112 times)

jeatrice

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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 PoolOverhead CostsCost driverActivity level
Supervision of direct labor$474,000Direct labor-hours790,000
Machine maintenance$147,200Machine-hours920,000
Facility rent$243,000Square feet of area135,000
Total overhead costs$864,200

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

Cost driverActual level
Direct labor-hours240
Machine-hours1,700
Square feet of area50

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
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by jeatrice on Mar 6, 2021

emily12345

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Reply #1 on: Mar 6, 2021
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jeatrice

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Reply 2 on: Mar 6, 2021
Excellent

bbburns21

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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