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Data concerning three of the activity cost pools of Salcido LLC, a legal firm, have been provided below: Activity Cost Pool Total Cost Total Activity Researching legal issues $ 22,880 800 research hours Meeting with clients $ 1,325,275 7,573 meeting hours Preparing documents $ 94,240 5,900 documents The activity rate for the "meeting with clients" activity cost pool is closest to:

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facundobuzzetti

Answer:

Meeting with clients= $175 per meeting hour

Explanation:

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Meeting with clients= 1,325,275/7,573

Meeting with clients= $175 per meeting hour

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