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Dilbert Manton Corporation uses an activity based costing system to assig on uses an activity based costing system to assign overhead costs to products. In
Dilbert Manton Corporation uses an activity based costing system to assig on uses an activity based costing system to assign overhead costs to products. In the first st costs-equipment expense and indirect labor-are allocated to the three activity cost pools-Processing, Su and Other-based on resource consumption. Data to perform these allocations appear ons Overhead costs: Equipment expense...... Indirect labor ...... $35,000 $6,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Processing Supervising Equipment expense.. 0.60 0.20 Indirect labor ... 0.10 0.30 Other 0.20 0.60 In the second stage, Processing costs are assigned to products using machine-hours (MHs) and Supervising costs assigned to products using the number of batches. The costs in the other activity cost pool are not assigned to pr Activity data for the company's two products follow: Activity: MHs (Processing) Batches (Supervising) Product Z5.. 2,900 600 Product C8... 7.100 400 Total ........... 10,000 1,000 10) What is the overhead cost assigned to Product Z5 underactivity-based costing? A) $6,264 B) $11,544 C) $5,280 D) $20,500 10)
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