Jacob Industries produces two electronic decoders, A and B. Decoder A is more sophisticated and requires more
Question:
Jacob Industries produces two electronic decoders, A and B. Decoder A is more sophisticated and requires more programming and testing than does Decoder B. Because of these product differences, the company wants to use activity-based costing to allocate overhead costs. It has identified four activity centers and their related information as follows.
Activity Centers | Cost Pool Total | Cost Driver |
Repair & maintenance on assembly machine | $102,000.00 | number of units produced |
Programming Costs | 175,300.00 | number of program hours |
Software inspections | 18,000.00 | number of inspections |
Product testing | 25,000.00 | number of tests |
Total overhead costs | $320,300.00 |
Expected activity for each product follows:
Number Of Units | Number of Programming Hrs. | Number of Inspections | Number of Tests | |
Decoder A | 25,000 | 2,300 | 210 | 1,385 |
Decoder B | 32,000 | 1,750 | 75 | 1,250 |
Totals | 57,000 | 4,050 | 285 | 2,635 |
What is the allocated overhead costs for the Repair & Maintenance center for Decoder A?
88,250.56 44,736.84 140,482.46 39,862.44