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Adria Company recently implemented an activity-based costing system. At the beginning of the
year, management made the following estimates of cost and activity in the company
Adria Company recently implemented an activity-based costing system. At the beginning of the
year, management made the following estimates of cost and activity in the company
Solution
Answer
Working
Activity
Cost
Pool
Activity
Rate
Labor-
related
5.00 per DLH
Purchase
orders
2.00 per order
Material
receipts
11.00 per receipt
Relay
assembly
7.00 per relay
General
factory
6.00 per MH
Adria Company recently implemented an activity-based costing system- A.docx

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Adria Company recently implemented an activity-based costing system- A.docx

  • 1. Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company Solution Answer Working Activity Cost Pool Activity Rate Labor- related 5.00 per DLH Purchase orders 2.00 per order Material receipts 11.00 per receipt Relay assembly 7.00 per relay General factory 6.00 per MH