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Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,700 units and
Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,700 units and of Product B is 1,500 units. There are three activity cost pools, with estimated costs and expected activity as follows: Cost Estimated cost pool Expected Activity Product A Product B Total 1 $ 92,063 2,200 2,100 4,3001 2 $116,739 3,200 1,900 5,100 3 $120,188 1,080 1,060 2,1401 What is the total expected overhead cost for Product B? $336,988 $185,042 $151,946 $33,096 QUESTION 8 10 points Save Answer Spates, Inc. manufactures and sells two products: Product A and Product B. Data concerning the expected production of each product and the expected total direct labor hours (DLHs) required to produce that output appear below. Expected DLH Per Units Unit Total DLH Product A 100 6 600 Product B 100 5 500 Total direct labor-hours 1,100 Spates, Inc.'s expected total manufacturing overhead is $266,988. If the company allocates all of its overhead based on direct labor-hours, how much overhead should be allocated to Product A? $1,213.58 $121,358.18 $1,456.30 $145,629.82
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