Question
Perkins Pedal Co. produces three models of bicycle: childrens, womens, and mens. Next quarter, Perkins anticipates receiving 800 purchase orders for childrens bikes, 575 for
Perkins Pedal Co. produces three models of bicycle: childrens, womens, and mens. Next quarter, Perkins anticipates receiving 800 purchase orders for childrens bikes, 575 for womens bikes, and 625 for mens bikes. It also expects to spend 12,000 labor hours on childrens bikes, 9,150 on womens bikes, and 10,750 on mens bikes. For the quarter, Perkins has identified an ordering and receiving activity cost pool with allocated overhead of $340,000. The cost driver for the pool is purchase orders. Given this information, how much ordering and receiving overhead is assigned to each product?
A : Childrens = $136,000; Womens = $97,750; Mens = $106,250
B : Childrens = $127,900; Womens = $97,524; Mens = $114,576
C : Childrens = $128,378; Womens = $97,537; Mens = $114,085
D : Childrens = $131,500; Womens = $97,600; Mens = $110,900
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