Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

leaming System XYZ Co has an activity-based costing system with three activity cost pools--Fixing, Cutting, and Other. In the first stage allocations, costs in

image text in transcribed

leaming System XYZ Co has an activity-based costing system with three activity cost pools--Fixing, Cutting, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and factory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Factory depreciation Indirect labor Distribution of Resource Consumption Across Activity Cost Pools: Equipment depreciation Factory expense $79,600 $5,000 Activity Cost Pools Fixing Cutting Other 0.50 0.30 0.20 0.50 0.30 0.20 Fixing costs are assigned to products using machine-hours (MHs) and Cutting costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Product A Product B Machine-hours (Fixing) Orders (Cutting) 1,550 9,700 1,070 1,630 The activity rate for the Cutting activity cost pool under activity-based costing is closest to (Round your intermediate calculations to 2 decimal place) Select one: O a. $6.83 per order O b. $94.00 per order O c. 59.40 per order O d. none of the given answer. Oe. $6.40 per order

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems

Authors: Vernon Richardson, Chengyee Chang

1st edition

78025494, 978-0078025495

More Books

Students also viewed these Accounting questions

Question

Calculate how much life insurance you need. L01

Answered: 1 week ago