Question
Zipp Company manufactures two products (X and Y). The overhead costs (84,000) have been divided into three cost pools that use the following activity drivers:
Zipp Company manufactures two products (X and Y). The overhead costs (84,000) have been divided into three cost pools that use the following activity drivers:
| Product | Number of Setups | Machine Hours | Packing Orders |
| X | 10 | 500 | 75 |
| Y | 10 | 2,000 | 175 |
| Cost per pool | 9,000 | 60,000 | 15,000 |
What is the amount of overhead cost to be assigned to Product X using machine hours as the activity driver in an activity-based costing system?
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Building Accounting Systems Using Access 2010
Authors: James Perry, Richard Newmark
8th Edition
1111530998, 978-1111530990
