Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Meester Corporation has an activity - based costing system with three activity cost pools - - Machining, Order Filling, and Other. In the first stage

Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow:
Overhead costs:
Equipment depreciation $ 80,400
Supervisory expense $ 4,100
Distribution of Resource Consumption Across Activity Cost Pools:
Activity Cost Pools
Machining Order Filling Other
Equipment depreciation 0.600.200.20
Supervisory expense 0.600.100.30
Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:
Activity:
MHs (Machining) Orders (Order Filling)
Product M01,300790
Product H29,5401,480
Total 10,8402,270
How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Statement Analysis

Authors: K. R. Subramanyam, John Wild

11th edition

78110963, 978-0078110962

More Books

Students also viewed these Accounting questions

Question

Rewrite the contingency table using relative frequencies.

Answered: 1 week ago