Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Deemer Corporation has an activity-based costing system with three activity cost pools Processing. Supervising, and other in the first stage locations costs in the two

image text in transcribed
image text in transcribed
image text in transcribed
Deemer Corporation has an activity-based costing system with three activity cost pools Processing. Supervising, and other in the first stage locations costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption Data used in the first stage allocations follow Overhead costs: Equipment expense Indirect labor $ 79,000 $ 11,900 Distribution of Resource Consumption Across Activity Cost Pools: Other Activity Cont Pools Processing Bupervising 0.40 0.40 0.40 0.30 0.20 Equipment expense Indirect labor 0.30 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 for the company's two products follow Activity Mits Product 16 Product XO Total Batches (Processing) (Supervising) 14,000 1,030 1.900 1,220 15,900 2.250 Deemer Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and other in the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor are allocated to the three activity cost pools based on resource consumption Data used in the first stage allocations follow Overhead costs Equipment expense Indirect labor $ 79,000 $ 11,900 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Processing Supervising 0.40 0.40 0.40 0.30 Equipment expense Indirect labor Other 0.20 0.30 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 for the company's two products follow Activity Product F6 Product xo Total MHS Batches (Processing) (Supervising) 14,000 1,030 1,900 1,220 15,900 2,250 What is the overhead cost assigned to Product XO under activity based costing? (Round your intermediate calculations to 2 decimal places.) Multiple Choice O $4,351 $23.420 $19.069 $33.398

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Clinical Audit In Primary Care Demonstrating Quality And Outcomes

Authors: Ruth Chambers, Gill Wakley

1st Edition

1857757092, 978-1857757095

More Books

Students also viewed these Accounting questions

Question

8. Set goals that relate to practice as well as competition.

Answered: 1 week ago