Business, 19.03.2021 23:20 alleyeverett031

Miramar Industries manufactures two products, A and B. The manufacturing operation involves three overhead activities - production setup, material handling, and general factory activities. Miramar uses activity-based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities: ActivityCostActivity Base
Production Setup$250,000Number of setups
Material Handling$150,000Number of parts
General Overhead$80,000Number of direct labor hours

Each productâs total activity in each of the three areas are as follows:

Product AProduct B
Number of setups100300
Number of parts40,00020,000
Number of direct labor hours9,00012,000
What is the activity rate for General Overhead?
A. $4.00 per direct labor hour
B. $3.81 per direct labor hour
C. $6.71 per direct labor hour
D. $4.20 per direct labor hour

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