Question
ABC Company makes 2 types of partsthe EX300 and the TX500. The company annually produces 60,000 units of EX300 and 12,500 units of TX500. The
ABC Company makes 2 types of partsthe EX300 and the TX500. The company annually produces 60,000 units of EX300 and 12,500 units of TX500. The companys conventional cost system allocates manufacturing OH to products using a plant-wide overhead rate and direct labor hours as the allocation base. Additional information relating to the companys 2 product lines is shown below EX300 TX500 Total Direct materials $366,325 $162,550 $528,875 Direct labor $120,000 $42,500 $162,500 The company is considering implementing an activity based costing system that distributes all of its manufacturing OH to 4 activities as shown below Activity Activity Cost Pool (and Activity Measure) Manufacturing Overhead EX300 TX500 Total Machining (machine hours) $198,250 90,000 62,500 152,500 Setups (setup hours) $150,000 75 300 375 Product-level (number of products) $100,250 1 1 2 General Factory (direct labor hours) $60,125 120,000 42,500 162,500 Total Manufacturing Overhead $508,625
The total product costs associated with Product TX500 are?
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