Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs-- equipment depreciation and supervisory

image text in transcribed

Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs-- equipment depreciation and supervisory expense are allocated to three activity cost pools--Machining, Order Filling, and Other-based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation Supervisory expense $ 47,000 $ 6,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling 0.60 0.10 0.60 0.20 Equipment depreciation Supervisory expense Other 0.30 0.20 In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling 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: Activity: Product C9 Product UO MHS (Machining) 6,900 3,100 10,000 Orders (Order Filling) 200 800 1,000 Total How much overhead cost is allocated to the Machining activity cost pool under activity-based costing in the first stage of allocation

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_2

Step: 3

blur-text-image_3

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

Cost Management Accounting And Control

Authors: Don R. Hansen, Maryanne M. Mowen

3rd Edition

0324002327, 978-0324002324

More Books

Students also viewed these Accounting questions

Question

What are three important characteristics of a periodic signal?

Answered: 1 week ago