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Meester Corporation has an activity-based costing system with three activity cost pools-Machining Order Filling, and Other. In the first stage allocations, costs in the two
Meester Corporation has an activity-based costing system with three activity cost pools-Machining Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment expense $ 81,200 Supervisory expense $ 11,200 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment expense 0.50 0.30 0.20 Supervisory expense 0.50 0.20 0.30 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 MO Product H2 Total MHS (Machining) 1,150 9,060 10,210 Orders (Order Filling) 610 2,280 2,890 What is the overhead cost assigned to Product H2 under activity based costing? (Round your intermediate calculations to 2 decimal places.) What is the overhead cost assigned to product H2 under activity-based costing? (Round your intermediate calculations to 2 decimal places.) Multiple Choice $61.927 $20,976 $40,951 $70,560
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