Question
Michael Scott Paper Company manufactures two products (X and Y). The overhead costs ($84,000) have been divided into three cost pools that use the following
Michael Scott Paper Company manufactures two products (X and Y). The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers:
Product | Number of Setups | Machine Hours | Packing Orders |
X | 10 | 500 | 75 |
Y | 10 | 2,000 | 175 |
|
|
|
|
Cost per pool | $9,000 | $60,000 | $15,000 |
Using a plant wide rate, what is the amount of overhead cost to be assigned to Product X using machine hours as the allocation base?
What is the allocation rate per packing order using activity-based costing?
If the number of machine hours is used to assign machine hour cost, determine the amount of machine hour cost to be assigned to Product X
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started