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Weirick, Inc., manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools,
Weirick, Inc., manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated | Expected Activity | |||||
Activity Cost Pools | Activity Measures | Overhead Cost | Product T8 | Product P4 | Total | |
Labor-related | DLHs | $ | 145,000 | 4,000 | 2,000 | 6,000 |
Production orders | orders | 68,360 | 1,100 | 300 | 1,400 | |
Order size | MHs | 1,069,190 | 2,700 | 3,100 | 5,800 | |
$ | 1,282,550 | |||||
The total overhead applied to Product P4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
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$1,000,830
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$571,454
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$634,443
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$1,137,550
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