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XY Corporation manufactures two products: Product X and Product Y. The company is considering implementing an activity-based costing (ABC) with three activity pools. The following
XY Corporation manufactures two products: Product X and Product Y. The company is considering implementing an activity-based costing (ABC) with three activity pools. The following information is available for the company as a whole and for Products X and Y. Activity Cost Activity Total Cost Total Activity Pool Driver Machine Machining $220,000 11,000 MHs hours Machine Number of $240,000 400 setups setups setups Product Number of $74,000 2 products design products The following usage data are available for Products X and Y. Activity Product X Product Y Driver (usage) (usage) Machine 7,000 4,000 hours Number of 270 130 setups Number of 1 products 1 The total overhead cost assigned to Product X under ABC is: $240,000 400 setups setups Product design OT setups Number of products $74,000 2 products The following usage data are available for Products X and Y. Activity. Product X Product Y Driver (usage) (usage) Machine 7,000 4,000 hours Number of 270 130 setups Number of 1 1 products The total overhead cost assigned to Product X under ABC is: $339,000 $356,000 $409,000 O $420,000 O None of the above
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