Multiple Choice
Use the information below to answer the following question(s) :
Vittoria Corporation manufactures two products-Carts and Wheelbarrows. The annual production and sales of Carts is 2,000 units, while 1,800 units of Wheelbarrows are produced and sold. The company has traditionally used direct labour hours to allocate its overhead to products. Carts require 1.0 direct labour hours per unit, while Wheelbarrows require 0.5 direct labour hours per unit. The total estimated overhead for the period is $117,500. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools:
Expected Activity
-The overhead cost per Wheelbarrow using an activity-based costing system would be closest to
A) $27.50.
B) $65.00.
C) $65.28.
D) $24.75.
Correct Answer:

Verified
Correct Answer:
Verified
Q96: Companies often refine their cost allocation systems
Q126: Use the information below to answer the
Q127: Four basic steps are used in an
Q128: Use the information below to answer the
Q129: Unit-level activities and costs are incurred once
Q130: Use the information below to answer the
Q132: Millennium Ideas Ltd. manufactures odd size sporting
Q133: The use of departmental overhead rates will
Q135: Use the information below to answer the
Q136: Research and development would most likely be