Andruschack Corporation uses activity-based costing to determine product costs for external financial reports. Overapplied or underapplied overhead is closed to the Cost of Goods Sold
Andruschack Corporation uses activity-based costing to determine product costs for external financial reports. Overapplied or underapplied overhead is closed to the Cost of Goods Sold account at the end of each year. The company has provided the following data concerning its activity-based costing system:
Activity Cost Pools (and Activity Measures)Estimated Overhead CostMachine related (machine-hours)$213,000Batch setup (setups)$339,000General factory (direct labour-hours)$193,200
Expected ActivityActivity Cost PoolsTotalProduct XProduct YMachine related10,0003,0007,000Batch setup10,0004,0006,000General factory14,0007,0007,000
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