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03-01-2023
Business

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Steel company uses activity-based costing and reports the following for this year. activity budgeted cost activity cost driver budgeted activity usage cutting $ 89,600 machine hours (mh) 3,200 machine hours assembly 360,000 direct labor hours (dlh) 7,200 direct labor hours total $ 449,600a) $28 per mh for cutting: $40 per dlh for assembly. b) $40 per mh for cutting; $28 per dlh for assembly. c) $7 per mh for cutting; $30 per dlh for assembly. d) $28 per mh for cutting; $120 per dlh for assembly. e) $37 per mh for cutting; $37 per dlh for assembly.a. compute an activity rate for each activity using activity-based costing.b. allocate overhead costs to a job that uses 40 machine hours and 30 direct labor hours.

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