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) | $ | 132,000 | |
| Batch setup (setups) | $ | 494,250 | |
| Order size (direct labor-hours) | $ | 94,350 | |
| Total Activity | ||||
| Activity Cost Pools | Product X | Product Y | Total | |
| Machine related | 1,100 | 6,400 | 7,500 | |
| Batch setup | 3,400 | 4,100 | 7,500 | |
| Order size | 6,300 | 2,200 | 8,500 | |
The total amount of overhead cost allocated to Product X would be closest to:
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Financial Accounting, Enhanced
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
11th Edition
1119594596, 9781119594598
