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or the last option (got cut out of picture): $100,000. Jacket Corporation uses activity-based costing to determine product costs for external financial reports. The company
or the last option (got cut out of picture): $100,000.
Jacket Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity- based costing (ABC) system which is used to allocate overhead costs: Activity Cost Pools (and Activity Measures) Estimated Overhead Cost Pool 1. Machine related (machine-hours)...... $300,000 Pool 2. Batch setup (setups)............. $900,000 Pool 3. General factory (direct labor-hours).. $250,000 Total overhead $1,450,000 Activities Units produced...... Machine hours................... Expected Activity for Year Total Product Product Y 100,000 50,000 50,000 9,000 9,000 12,000 4,000 8,000 10,000 8,000 2,000 3,000 Setups..... Direct labor hours.... ......... Under ABC, how much General factory costs (Pool 3) would be expected to be allocated to Product X? Round rates to the nearest penny. Choose the closest answer. $50,000 $200,000 $83,333.33 $125,000Step by Step Solution
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