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Betterton Corporation uses an activity based costing system to assign overhead costs to products. In the rst stage, two overhead costsequipment depreciation and supervisory expense-are
Betterton Corporation uses an activity based costing system to assign overhead costs to products. In the rst stage, two overhead costsequipment depreciation and supervisory expense-are allocated to three activity cost poolsMachining, Order Filling, and Otherbased on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation $55 , 50 0 Supervisory expense $ 4 , 750 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order other Filling Equipment depreciation 0.50 0.30 0.20 Supervisory expense 0.10 0.40 0.50 In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: In the second stage, Machining costs are assigned to products using machinehours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: Orders MHs (Order (Machining) Filling) Product A8 3,200 700 Product K2 18,000 2,100 Total 21,200 2,800 What is the overhead cost assigned to Product A8 under activity-based costing? (Round intermediate calculations to two decimal places.) What is the overhead cost assigned to Product A8 under activity-based costing? (Round intermediate calculations to two decimal places.) Multiple Choice $4,256 0 $4,641 0 $30,125 0 $8,897
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