One of company A's cost pool is parts administration. The expected overhead cost for that cost pool was ₹3,80,000 and the expected activity was 5,000 part types. The actual overhead cost for the cost pool was ₹4,20,000 a

CS Executive · Cost and Management Accounting · PYQS · December 2019
One of company A's cost pool is parts administration. The expected overhead cost for that cost pool was ₹3,80,000 and the expected activity was 5,000 part types. The actual overhead cost for the cost pool was ₹4,20,000 at an actual activity of 6,000 part types. The activity rate used to assign costs for that cost pool was:
(A) ₹63 per part type
(B) ₹76 per part type
(C) ₹70 per part type
(D) ₹84 per part type

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Activity Based Costing (ABC)

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