Question
Maxi manufactures and sells two products: Product F2 and Product T4. The annual production and sales of Product of F2 is 300 units and of
Maxi manufactures and sells two products: Product F2 and Product T4. The annual production and sales of Product of F2 is 300 units and of Product T4 is 100 units. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity.
Labor related estimated Overhead Cost is $67,966 and the expected activity for Product F2 is 2,400 units and the expected Activity for Product T4 is 1,000 units.
The production orders Estimated Overhead Cost is $13,874 and the expected activity for product F2 is 300 and the expected activity for product T4 is 400 units
Th e General Factory Estimated Overhead Cost is $283,911 and the expected activity for product F2 is 5,000 units and the expected activity for product T4 is 5,100.
What would be the Overhead applied to each unit of product T4 under activity based costing?
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
5th Canadian edition
978-1118024492
