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TB MC Qu. 7-107 (Algo) Meester Corporation has an activity-based ... Meester Corporation has an activity based costing system with three activity cost pools-Machining. Order
TB MC Qu. 7-107 (Algo) Meester Corporation has an activity-based ... Meester Corporation has an activity based costing system with three activity cost pools-Machining. Order Filling, and Other in the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption Data used in the first stage allocations follow. Overhead costs Equipment depreciation Supervisory expense $ 84,800 $ 7,380 Distribution of Resource Consumption Across Activity Cost Pools Activity Cost Pools Machining Order Filling Other Equipnent depreciation 9.50 0.40 0.10 Supervisory expense 0.50 8.30 0.20 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 data for the company's two products follow, Activity Product MO Product H2 Total Mes (Machining) 1,570 9,870 11,440 Orders (Order Filling) 1,190 2,080 3,270
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