Question
A manufacturer produces three products: A, B, and C. The company uses the following information to determine activity rates for each pool: CostPoolCostsTotal ActivityPool 1$300,000
A manufacturer produces three products: A, B, and C.
The company uses the following information to determine activity rates for each pool:
CostPoolCostsTotal ActivityPool 1$300,000
20,000 hoursPool 2$20,000
500 poundsPool 3$10,000
100 movesTotal$330,000
Data concerning the three products appear below:
Cost DriverProducts AProducts BProducts CNumber of hours10,000
7,500
2,500
Number of pounds150
250
100
Number of moves20
30
50
What is the total amount of overhead applied to product A?
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Accounting Principles
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
IFRS global edition
1-119-41959-4, 470534796, 9780470534793, 9781119419594 , 978-1119419617
