Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Mcnamee Corporation's activity-based costing system has three activity cost pools--Fabricating, Setting Up, and Other. Costs in the Fabricating cost pool are assigned to products based

Mcnamee Corporation's activity-based costing system has three activity cost pools--Fabricating, Setting Up, and Other. Costs in the Fabricating cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. The activity rate for Fabricating is $0.29 per MH; the activity rate for Setting Up is $3.45 per batch. The following table shows the machine-hours and number of batches associated with each of the company's two products:

MHs Batches
Product O0 2,050 350
Product O1 16,450 1,650
Total 18,500 2,000

Required:

Determine the amount of overhead cost that would be assigned to each product using activity-based costing. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

image text in transcribed

Amount of Overhead Cost Product 00 Product 01

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions