Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

TB MC Qu. 5-110 (Algo) Doede Corporation uses activity-based costing... Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based

TB MC Qu. 5-110 (Algo) Doede Corporation uses activity-based costing... Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts--equipment depreciation and supervisory expense--to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation Supervisory expense $ 51,000 $ 11,300 Distribution of Resource Consumption Across Activity Cost Pools: Equipment depreciation Supervisory expense Machining 0.50 0.50 Activity Cost Pools Order Filling 0.20 0.10 Other 0.30 0.40 In the second stage, 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: Orders (Order MHS (Machining) Filling) Product W1 5,630 18,600 24,230 199 981 1,180 Product MO Total Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales and Direct Cost Data: Livity. MHS (Machining) Product W1 Product MO 5,630 Total 18,600 24,230 Orders (Order Filling) 199 981 1,180 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales and Direct Cost Data: Sales (total) Direct materials (total) Direct labor (total) Product W1 Product MO $ 66,210 $ 65,900 $ 31,700 $ 22,200 $ 19,000 $ 27,800 What is the overhead cost assigned to Product W1 under activity-based costing? Note: Round your intermediate calculations to 2 decimal places and your final answer to nearest whole dollar amount. Multiple Choice $7,263 $31,150 What is the overhead cost assigned to Product W1 under activity-based costing? Note: Round your intermediate calculations to 2 decimal places and your final answer to nearest whole dollar amount. Multiple Choice O $7,263 $31,150 $9,173 $1,910 < Prev 7 of 10 Next >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Dipifr Diploma In International Financial Reporting Revision Kit

Authors: BPP Learning Media

1st Edition

150973872X, 978-1509738724

More Books

Students also viewed these Accounting questions

Question

Explain the rationale for using stock prices to infer default risk.

Answered: 1 week ago

Question

1. Write down two or three of your greatest strengths.

Answered: 1 week ago