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Bellows Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other.
Bellows Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: Processing Supervising Other $ 4,940 $ 32,000 $ 11,000 Processing costs are assigned to products using machine-hours (MHS) and Supervising costs are assigned to products using the number of batches. The costs in the other activity cost pool are not assigned to products. Activity data appear below: Product V23 Product 149 Total MHS (Processing) 12,350 650 13,000 Batches (Supervising) 800 800 1,600 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Sales (total) Direct materials (total) Direct labor (total) Product V23 $ 80,400 $ 29, 100 $ 28,400 Product 149 $ 92,900 $ 32,000 $ 42,300 What is the product margin for Product V49 under activity-based costing? Multiple Choice $22,900 O O $2.353 O O $2,207 | $18,600
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