Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1a. 1b. Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts-equipment depreciation and
1a.
1b.
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense-to three activity cost pools--Machining. Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below Overhead costs: Equipment depreciation Supervisory expense $98,000 $13,400 Distribution of Resource Consumption Across Activity Cost Pools Activity Cost Pools Machining Order Filling Equipment depreciation Supervisory expense 0.60 0.60 0.20 0.10 Other 0.20 0.30 In the second stage, 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 MHs Orders (Machining) (Order Filling) Product W1 Product Me Total 6,060 14, 700 20,760 112 975 1,087 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales and Direct Cost Data Product Product MO Sales (total) Direct materials (total) Direct labor (total) W1 $83,550 $68,400 $38,500 $22,400 $22,000 $33,700 What is the overhead cost assigned to Product W1 under activity-based costing? (Round your Intermedlate calculetlons to 2 declmal pleces and your final answer to nearest whole dollar aStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started