Knowledge Check 01 Expected Activity ...
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Accounting
Knowledge Check 01
| Expected Activity | |||||||||
| Activities and Activity Measures | Estimated Overhead Costs | Product 1 | Product 2 | ||||||
| Hand-processing (direct labor-hours) | $ | 320,000 | 45,000 | 55,000 | |||||
| Setting up equipment (number of setups) | 150,000 | 9,000 | 21,000 | ||||||
| Administering parts inventories (number of part types) | 30,000 | 110 | 90 | ||||||
| $ | 500,000 | ||||||||
Transformation Corporation has provided the information set forth above regarding the overhead to be allocated between the two products it produces: CDE and EFG. What is the activity rate for the hand-processing units activity?
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