Question
Aujla 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:
Aujla 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) | $239,000 |
Batch setup (setups) | $234,900 |
General factory (direct labour-hours) | $159,300 |
Expected Activity | |||
Activity Cost Pools | Total | Product X | Product Y |
Machine related | 10,000 | 3,000 | 7,000 |
Batch setup | 10,000 | 4,000 | 6,000 |
General factory | 14,000 | 7,000 | 7,000 |
If 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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Hospitals What They Are And How They Work
Authors: Don Griffin, Donald J Griffin
3rd Edition
076372758X, 9780763727581
