In activity-based costing, the total overhead cost in an activity cost pool can be computed by:
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multiplying the total direct labor-hours in the activity cost pool by the activity rate for the activity cost pool. |
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dividing the total activity in the activity cost pool by the activity rate for the activity cost pool. |
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multiplying the total activity in the activity cost pool by the activity rate for the activity cost pool. |
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dividing the total direct labor-hours in the activity cost pool by the activity rate for the activity cost pool. |
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