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Capizzi Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two
Capizzi Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow Overhead costs Equipment depreciation Su 100 300 expense Distribution of Resource Consumption Across Activity Cost Pools Activity Cost Pools Machining Orde r F 0.30 0.20 Other 0.30 0.40 Equipment depreciation 0.40 0.40 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 MHs (Machi Orders Product Y7 1,320 9.310 1280 1,820 Total What is the overhead cost assigned to Product V2 under activity-based costing? (Round your intermediate calculations to 2 decimal places and your final answer to nearest whole dollar.) O $45,218 O $30,258 O $14.960 O $59,190 Talboe Company makes wheels which it uses in the production of children's wagons. Talboe's costs to produce 170,000 wheels annually are as follows: Direct material 34,000 51000 25,500 Variable manufa Fixed manufacturing overead Total An outside supplier has offered to sell Talboe similar wheels for $0.80 per wheel. If the wheels are purchased from the outside supplier, $20,000 of annual fixed manufacturing overhead would be avoided and the facilities now being used to make the wheels would be rented to another company for $49,700 per year What is the highest price that Talboe could pay the outside supplier for each wheel and still be economically indifferent between making or buying the wheels? (Round your answer to 2 decimal places.) O $1.06 $0.77 O $1.03 $101
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