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VCO GmbH uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs - Supervisory expense and
VCO GmbH uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs - Supervisory expense and Security expense - are allocated to three activity cost pools - Carving, Shipping, and Other - based on resource consumption. Data to perform these allocations appear below: Overhead Costs: Supervisory expense: $115,000 Security expense: $100,000 Distribution of Resource Consumption across Activity Cost Pools: Overhead Cost Activity Cost Pools Carving Shipping Other Supervisory expense 0.44 0.42 0.14 Security expense 0.26 0.28 0.46 In the second stage, Carving costs are assigned to products using machine hours and Shipping costs are assigned to products using the number of orders shipped. The costs in the Other activity pool are not assigned to products. Activity data for the company's two products is as follows: machine hours orders shipped Product VM-010: 6,100 6,200 Product LS-117: 2,500 2,300 Total: 8,600 8,500 What is the overhead cost assigned to Product VM-010 under activity based costing?Answer 3 Question 9
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