Question
Flory Company uses activity-based costing to determine product costs for external financial reports. The company has provided the following information regarding its activity-based costing system.
Flory Company uses activity-based costing to determine product costs for external financial reports. The company has provided the following information regarding its activity-based costing system.
The below table shows the expected activity.
15. What is the activity rate for the Batch Setup activity cost pool? *
6 points
$42.00 per setup
$53.00 per setup
$75.60 per setup
$94.50 per setup
None of the above
16. What is the total amount of overhead cost allocated to product Y, assuming that the actual activity is the same as the expected activity? *
6 points
$238,500
$378,000
$494,000
$943,600
None of the above
Activity Cost Pool Activity Measure Estimated Overhead Cost Machine Related Machine Hours $408,100 Setups $378,000 Batch Setup General Factory Direct Labor Hours $157,500 Product X Product Y Total Activity Cost Pool Machine Related 3,200 7,700 4,500 4,000 5,000 9,000 Batch Setup General Factory 2,000 2,500 4,500Step by Step Solution
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