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9 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
9 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 $103,000 Supervisory expense $ 13,100 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling 0.60 0.20 0.60 0.10 Equipment depreciation Supervisory expense 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: Product wi Product MO MHS (Machining) 6,270 18,800 25,070 Orders (Order Filling) 104 984 1,088 Total Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales and Direct Cost Data: Product W1 $73,700 Product MO $67,500 Sales (total) Direct materials (total) Direct labor (total) $34,300 $ 18,000 $15,200 $34,800 What is the overhead cost assigned to Product W1 under activity-based costing? (Round your intermediate calculations to 2 decimal places and your final answer to nearest whole dollar amount.) Multiple Choice $17,431 $69,660 $19,525 $2,095
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