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Hello. I could use help filling out and answering the below question for my ACC 205 Managerial Accounting Chapter 7 Homework. It would be greatly
Hello. I could use help filling out and answering the below question for my ACC 205 Managerial Accounting Chapter 7 Homework. It would be greatly appreciated. Book reference if needed is: Managerial Accounting, Garrison, Noreen and Brewer. McGraw-Hill Education. 16th edition. Copyright 2017 (ISBN 978-1-260-15313-2).
- Boudoin Corporation manufactures two products: Product T72T and Product L34S. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products T72T and L34S.
Activity Cost Pool | Activity Measure | Total Cost | Total Activity | ||
Machining | Machine-hours | $380,000 | 11,000 | MHs | |
Machine setups | Number of setups | $150,000 | 385 | setups | |
Product design | Number of products | $78,000 | 2 | products | |
General factory | Direct labor-hours | $190,000 | 14,000 | DLHs |
Activity Measure | Product T72T | Product L34S | |
Machine-hours | 6,000 | 5,000 | |
Number of setups | 280 | 105 | |
Number of products | 1 | 1 | |
Direct labor-hours | 6,000 | 8,000 |
Required:
a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product T72T?
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