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) | 81,600 |
| Batch setup (setups). | 387,000 |
| General factory (direct labour-hours). | 274,800 |
| Expected Activity | |||
| Activity Cost Pools | Total | Product X | Product Y |
| Machine related | 8,000 | 3,000 | 5,000 |
| Batch setup | 10,000 | 2,000 | 8,000 |
| General factory | 12,000 | 7,000 | 5,000 |
1.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:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing a risk based approach to conducting a quality audit
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
9th edition
9781133939160, 1133939155, 1133939163, 978-1133939153
