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Hugle Corporation's activity-based costing system has three activity cost pools-Machining, Setting Up, and Other. The company's overhead costs have already been allocated to these cost
Hugle Corporation's activity-based costing system has three activity cost pools-Machining, Setting Up, and Other. The company's overhead costs have already been allocated to these cost pools as follows: Activity Rate $2.50 Activity Measure Number of Machine Hour Activity Cost Pool Machining Setting Up Other $35 Number of batches Not Applicable Not Applicable The following table shows the machine-hours and number of batches associated with each of the company's two products: Machine Hour Batches Product E8 2,000 800 Product V10 8,000 200 Total 10,000 1000 The amount of overhead cost that would be assigned to the product E8 using activity-based costing is: A None of the choices are correct B $28,000 $33,000 $27,000
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