Question
Peters, Inc. produces 3 products: P1, Q2, and R3. P1 requires400purchase orders, Q2 requires600purchase orders, and R3 requires1000purchase orders. Peters has identified an ordering and
Peters, Inc. produces 3 products: P1, Q2, and R3. P1 requires400purchase orders, Q2 requires600purchase orders, and R3 requires1000purchase orders. Peters has identified an ordering and receiving activity cost pool with allocated overhead of $300000for which the cost driver is purchase orders. Direct labor hours used on each product are50000for P1,40000for Q2, and110000for R3. How much ordering and receiving overhead is assigned to each product?
P1Q2R3
a) $100000$100000$100000
b) $75000$60000$165000
c) $67500$75000$157500
d) $60000$90000$150000
Which letter is correct?
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