Answered step by step
Verified Expert Solution
Question
1 Approved Answer
XYZ Corporation uses an activity-based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated
XYZ Corporation uses an activity-based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: $47,000 Equipment depreciation Supervisory expense $6,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Order Filling Other Machining 60% Equipment depreciation 1096 3096 Supervisory expense 6096 2096 2096 (6.) In the second stage, Machining costs are assigned to products using machine-hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: MHS (Machining) 6,900 Orders (Order Filling) 200 Product C9 Product UO 3,100 800 Total 10,000 1,000 How much overhead cost is allocated to the Machining activity cost pool under activity-based costing in the first stage of allocation? O $31,800 O $3,600 O $15.300 O $28,200 QUESTION 7 In the second stage, Machining costs are assigned to products using machine-hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: Orders (Order Filling) MHS (Machining) 6,900 Product C9 200 Product UO 3,100 800 Total 10.000 1.000 The activity rate for the Machining activity cost pool under activity-based costing is closest to: $18.00 per MH $5.30 per MH O $2.82 per MH O $3.18 per MH QUESTIONS In the second stage, Machining costs are assigned to products using machine-hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: MHS (Machining) 6,900 Orders (Order Filling) 200 Product C9 Product UO 3,100 800 Total 10,000 1,000 What is the overhead cost assigned to Product C9 under activity-based costing? $26.500 $21,942 O $1,180 O $23,122
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started