20. One of company Z's cost pool is parts administration. The expected overhead cost for that cost pool was ₹4,00,000 and the expected activity was 5,000 part types. The actual overhead cost for the cost pool was ₹6,00,0

CS Executive · Cost and Management Accounting · PYQS · June 2021
20. One of company Z's cost pool is parts administration. The expected overhead cost for that cost pool was ₹4,00,000 and the expected activity was 5,000 part types. The actual overhead cost for the cost pool was ₹6,00,000 at an actual activity of 6,000 part types. The activity rate used to assign costs for that cost pool was ..........
(A) ₹66.67 per part type
(B) ₹80 per part type
(C) ₹100 per part type
(D) ₹120 per part type

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Activity Based Costing (ABC)

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