Question
Angel 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:
Angel 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 Pools (and Activity Measures) | Estimated Overhead Cost | ||
| Machine related (machine-hours) | $ | 317,520 | |
| Batch setup (setups) | $ | 353,460 | |
| Order size (direct labor-hours) | $ | 250,560 | |
| Expected Activity | |||
| Activity Cost Pools | Product X | Product Y | Total |
| Machine related | 5,300 | 7,300 | 12,600 |
| Batch setup | 10,600 | 2,300 | 12,900 |
| Order size | 4,300 | 7,300 | 11,600 |
Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to:
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
