One of Pintu Company's cost pools is parts administration. The budgeted overhead cost for that cost pool was - 4,00,000 and the expected activity…

CA Intermediate · Cost and Management Accounting · MTP · September 2024
One of Pintu Company's cost pools is parts administration. The budgeted overhead cost for that cost pool was - 4,00,000 and the expected activity was 4,000 part types. The actual overhead cost for the cost pool was - 4,20,000 at an actual activity of 5,000 part types. The activity rate for that cost pool was:
(A) 80 per part type
(B) 100 per part type
(C) 105 per part type
(D) 84 per part type

Suggested Answer and Working Notes:

Correct Answer: Option (B)

100 per part type

Topics: Budgets and Budgetary Control, Activity Based Costing

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