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Austad Corp. 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:
Austad Corp. 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: Estimated Overhead 67,500 Activity Cost Pools (and activity measures) Depreciation (allocated based machine- hours) Batch setup (allocated based on the # of setups) General factory (allocated based on the # of direct labour-hours) 273,700 204,000 Activity Cost Pools Machine Related Batch Setup General Factory Total 5,000 M hours 7,000 set-ups 8,000 DL hours Expected Activity Product X 4,000 3,000 1,000 Product Y 1,000 4,000 7,000 The total overhead allocated to Product Y is: a) 196,800 b) 102,000 c) 348,000 d) 273,000
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