Question
USE THE FOLLOWING INFORMATION FOR QUESTIONS 17 AND18 K & C is a diversified manufacturer of industrial goods. The companys activity-based costing system contains the
USE THE FOLLOWING INFORMATION FOR QUESTIONS 17 AND18
K & C is a diversified manufacturer of industrial goods. The companys activity-based costing system contains the following three activity cost pools and activity rates:
Activity Cost Pool | Activity Rates | |
Supporting direct labor | $ 10 | per direct labor-hour |
Machine processing | $ 2 | per machine-hour |
Machine setups | $ 50 | per setup |
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Activity data have been supplied for the following two products:
| Total Expected Activity | |
K25 | M67 | |
Number of units produced per year | 200 | 2,000 |
Direct labor-hours | 925 | 60 |
Machine-hours | 2,400 | 50 |
Machine setups | 15 | 2 |
17. How much total overhead cost would be assigned to K25 using the activity-based costing system?
18. How much total overhead cost would be assigned to M67 using the activity-based costing system?
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