Question
Mussenden Corporation has an activity-based costing system with three activity cost poolsMachining, Order Filling, and Other. In the first stage allocations, costs in the two
Mussenden Corporation has an activity-based costing system with three activity cost poolsMachining, 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 depreciation $ 98,360 Supervisory expense $ 2,570 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.60 0.10 0.30 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: MHs (Machining) Orders (Order Filling) Product P4 5,400 450 Product S4 9,600 1,050 Total 15,000 1,500 What is the overhead cost assigned to Product S4 under activity-based costing? (Round intermediate calculations to two decimal places.)
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