Question
3.) Boudoin Corporation manufactures two products: Product T72T and Product L34S. It is considering implementing an activity-based costing (ABC) system that allocates all of
3.) Boudoin Corporation manufactures two products: Product T72T and Product L34S. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products T72T and L34S. Activity Cost Pool Activity Measure Machine-hours Total Cost Machining $380,000 Total Activity 11,000 MHs Machine setups Number of setups $150,000 385 setups Product design Number of products $78,000 2 products General factory Direct labor-hours $190,000 14,000 DLHS Activity Measure Product T72T Product L34S Machine-hours 6,000 5,000 Number of setups 280 105 Number of products 1 1 6,000 8,000 Direct labor-hours Required: a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product T72T?
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