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) | $ 137,600 |
| Batch setup (setups) | $ 532,800 |
| Order size (direct labor-hours) | $ 105,300 |
| Activity Cost Pools | Total Activity | ||
|---|---|---|---|
| Product X | Product Y | Total | |
| Machine related | 1,000 | 7,000 | 8,000 |
| Batch setup | 3,000 | 5,000 | 8,000 |
| Order size | 7,000 | 2,000 | 9,000 |
The total amount of overhead cost allocated to Product X would be closest to:
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Government and Not-for-Profit Accounting Concepts and Practices
Authors: Michael H. Granof, Saleha B. Khumawala, Thad D. Calabrese, Daniel L. Smith
8th edition
1119495814, 1119495857, 1119495819, 9781119495819 , 978-1119495857
