Question
Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:
Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:
| Activity Cost Pool (and Activity Measure) | Total Cost | ||
| Machine related (machine-hours) | $ | 113,100 | |
| Batch setup (setups) | $ | 439,400 | |
| Order size (direct labor-hours) | $ | 84,000 | |
| Total Activity | ||||
| Activity Cost Pools | Product X | Product Y | Total | |
| Machine related | 900 | 5,600 | 6,500 | |
| Batch setup | 3,200 | 3,300 | 6,500 | |
| Order size | 6,100 | 1,400 | 7,500 | |
The total amount of overhead cost allocated to Product X would be closest to:
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Principles of Auditing and Other Assurance Services
Authors: Ray Whittington, Kurt Pany
19th edition
978-0077804770, 78025613, 77804775, 978-0078025617
