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B Assume a company manufactures only two products-14,000 units of Product A and 6,000 units of Product. It is considering implementing an activity based costing
B Assume a company manufactures only two products-14,000 units of Product A and 6,000 units of Product. It is considering implementing an activity based costing (ABC) system that allocates all of its manufacturing overhead to three cost pools. The following additional information is available for the company as a whole and for Products A and B Activity Cost Pool Machining Machine setups Product design Activity Measure Machine-hours Number of setups Number of products Activity Measure Machine-hours Number of setupa Number of products Product A Product 9,000 6,000 50 150 1 Estimated Overhead Cost Expected Activity $ 300,000 $ 150,000 $ 78,000 30,000 MN 200 Setups 2 Products Using the ABC system, how much overhead cost would be assigned from the Machining cost pool to Product A? Multiple Choice $70,000 $150,000 Assume a company produces and sells only two products-14,000 units of Product A and 6,000 units of Product B. Product A's direct materials and direct abor costs per unit are $33 and $12, respectively Product B's direct materials and direct labor costs per unit are $34 and $15, respectively. The company considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to three cost pools. The following additional information is available for the company as a whole and for Products A and B Activity Coat Pool Machining Machine setups Product design ctivity Measure schine-hours mber of setupa ber of products Activity Measure Machine-hours Number of setups Number of products Product A 9,000 50 1 Product B 6,000 150 1 Estimated Overhead Cost $ 300,000 $150,000 $ 78,000 Expected Activity 12,500 MH 200 Setups 2 Products the ABC system, the unit product cost for Product A is closest to tiple Choice $63.89 $65.89
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