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please explain the process. i want to understand. not just know the answer thank you Bartow Corporation uses an activity-based costing system to assign overhead
please explain the process. i want to understand. not just know the answer thank you
Bartow Corporation uses an activity-based costing system to assign overhead costs to products. In the first stage, two overhead costs-equipment expense and indirect labor- are allocated to the three activity cost pools-Processing, Supervising, and Other-based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment expense Indirect labor $ 29,000 $ 8,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Processing Supervising Other Equipment expense 0.20 0.60 0.20 Indirect labot 0.50 0.30 0.20 In the second stage, Processing costs are assigned to products using machine-hours (MHS) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: 6 Product H3 Product 05 Total MHS (Machining) Orders (Order Filling) 6,700 700 3,300 1,300 10,000 2,000 How much overhead cost is allocated to the Processing activity cost pool under activity- based costing in the first stage of allocation Step by Step Solution
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