Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Fletes Corporation manufactures two products: Product 095C and Product M31N. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing
Fletes Corporation manufactures two products: Product 095C and Product M31N. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products 095C and M31N. Activity Cost Pool Machining Machine setups Product design Order size Activity MeasureTotal Cost Machine-hours Number of setup:s Number of products Direct labor-hours Total Activity 5207,000 9,000 MHs $140,00 3e setups $ 98,600 5340,000 10,000 DLHs 2 products Activity Measure Product 095C 6,800 Product M31N 3,e00 Machine-hours Number of setups Number of product Direct labor- hours 190 160 4,000 6,000 Using the ABC system, how much total manufacturing ovemead cost would be assigned to Product 095C? Multiplo Choice $392,500 $136.000 5399.000 $263,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started