-/1 Question 12 View Policies Current Attempt in Progress Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Thomsen has identified an activity cost pool with allocated overhead of $1500000 for which the cost driver is machine setups. How much overhead is assigned to each product? Fire Wind Earth $843750 $281250 $375000 $234375 $703125 $312500 $500000 $500000 $500000 $281250 $500000 $718750

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 12
View Policies
Current Attempt in Progress
Thomsen Computer Company produces three products:
Earth, Wind, and Fire. Earth requires 80 machine setups,
Wind requires 60 setups, and Fire requires 180 setups.
Thomsen has identified an activity cost pool with allocated
overhead of $1500000 for which the cost driver is machine
setups. How much overhead is assigned to each product?
Fire
Wind
Earth
$843750
$281250
$375000
$234375
$703125
$312500
$500000
$500000
$500000
$281250
$500000
$718750
Transcribed Image Text:-/1 Question 12 View Policies Current Attempt in Progress Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Thomsen has identified an activity cost pool with allocated overhead of $1500000 for which the cost driver is machine setups. How much overhead is assigned to each product? Fire Wind Earth $843750 $281250 $375000 $234375 $703125 $312500 $500000 $500000 $500000 $281250 $500000 $718750
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