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Dercole Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as
Dercole Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Machining, $43,200; Order Filling, $13,900; and Other, $14,900. 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 appear below: MHS (Machining) 7,300 2,700 Orders (Order Filling) 600 1,400 Product N8 Product Y4 The activity rate for the Machining activity cost pool under activity-based costing is closest to: Multiple Choice $7.20 per MH $4.02 per MH $5.00 per MH $4.32 per MH Dercole Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Machining, $43,200; Order Filling, $13,900; and Other, $14,900. 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 appear below: MHS (Machining) 7,300 2,700 Orders (Order Filling) 600 1,400 Product N8 Product Y4 What is the overhead cost assigned to Product N8 under activity-based costing? Multiple Choice $4,170 $31,536 $35,706 $36,000 Flemming Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Machining, Order Filling, and Other. The costs in those activity cost pools appear below: Machining Order Filling Other $ 20,900 $ 22,900 $ 29, 200 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 appear below: MHS (Machining) 9,600 400 Orders (Order Filling) 600 400 Product U6 Product Z8 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales (total) Direct materials (total) Direct labor (total) Product U6 $ 185, 100 $ 56,600 $ 400 Product Z8 $ 178, 100 $ 98,600 700 The activity rate for Machining under activity-based costing is closest to: Multiple Choice $7.30 per MH $2.04 per MH $2.09 per MH o $0.83 per MH Flemming Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Machining, Order Filling, and Other. The costs in those activity cost pools appear below: Machining Order Filling Other $ 20,900 $ 22,900 $ 29, 200 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 appear below: MHs (Machining) 9,600 Orders (Order Filling) 600 400 Product U6 Product Z8 400 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales (total) Direct materials (total) Direct labor (total) Product U6 $ 185, 100 $ 56,600 $ 83,400 Product 28 $ 178, 100 $ 98,600 $ 63,700 What is the overhead cost assigned to Product U6 under activity-based costing? Multiple Choice $36,500 $20,064 O $33,804 o $13,740
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