Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XYZ company has supplied the following data from its activity-based costing system: Overhead Costs Wages and Salaries -$500,000 Other Overhead Costs - $200,000 Activity Cost

XYZ company has supplied the following data from its activity-based costing system:

Overhead Costs

Wages and Salaries -$500,000

Other Overhead Costs - $200,000

Activity Cost Pool Activity Measure Total Activity for the Year

Supporting direct labor Number of labor hours 15,000 Labor Hours

Order Processing Number of Customer Orders 300 Orders

Customer Support Number of Customers 400

Other n/a n/a

Distribution of Resource Consumption Across Activities

Supporting Direct Labor Order Processing Customer Support Other Total

Wages and Salaries 20% 20% 50% 10% 100%

Other Overhead Costs 30% 30% 20% 20% 100%

Assume job #333 required the following:

400 labor hours

5 customer orders

1 customer

How much ABC costs would be allocated to Job #333?

(A) $4,266.67(B) $5,967.29(C) $7,658.33 (D) $725.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets and Institutions

Authors: Jeff Madura

12th edition

9781337515535, 1337099740, 1337515531, 978-1337099745

More Books

Students also viewed these Finance questions