24. Aveda, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requires 1,000 purchase orders. Aveda has identified an ordering and receiving activity cost pool with allocated overhead of $240,000 for which the cost driver is purchase orders. Direct labor hours used on each product are 50,000 for P1, 40,000 for Q2, and 110,000 for R3. How much ordering and receiving overhead is assigned to each product using activity-based costing? P1 A) Q2 $54,000 $60,000 R3 $126,000 B) $80,000 $80,000 $80,000 10 C) $48,000 $72,000 $120,000 D) $60,000 $48,000 $132,000 030 2188 000 01c2 25. Urban Products Co. incurs $1,050,000 of overhead costs each year in its three main departments, machining ($600,000), inspections ($300,000) and packing ($150,000). The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing department packs 1,000 orders per year. Information about Urban's two products is of follows: 1A esion 00 Product Y 3,000 500 Product X 1,000 100 Machining hours Inspections Orders packed Direct labor hours o costs. Sh 650 350 1,800 1,700 po If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year? A) $252,501 B) $525,000 C) $363,462 D) $510,000 QEA CD Joanoo i eanssauhtco (G esbivang Yo ihonsd baSh3 .BESA 3000 b u elg foo 1Svn ovhb
24. Aveda, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requires 1,000 purchase orders. Aveda has identified an ordering and receiving activity cost pool with allocated overhead of $240,000 for which the cost driver is purchase orders. Direct labor hours used on each product are 50,000 for P1, 40,000 for Q2, and 110,000 for R3. How much ordering and receiving overhead is assigned to each product using activity-based costing? P1 A) Q2 $54,000 $60,000 R3 $126,000 B) $80,000 $80,000 $80,000 10 C) $48,000 $72,000 $120,000 D) $60,000 $48,000 $132,000 030 2188 000 01c2 25. Urban Products Co. incurs $1,050,000 of overhead costs each year in its three main departments, machining ($600,000), inspections ($300,000) and packing ($150,000). The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing department packs 1,000 orders per year. Information about Urban's two products is of follows: 1A esion 00 Product Y 3,000 500 Product X 1,000 100 Machining hours Inspections Orders packed Direct labor hours o costs. Sh 650 350 1,800 1,700 po If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year? A) $252,501 B) $525,000 C) $363,462 D) $510,000 QEA CD Joanoo i eanssauhtco (G esbivang Yo ihonsd baSh3 .BESA 3000 b u elg foo 1Svn ovhb
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:24. Aveda, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2
requires 600 purchase orders, and R3 requires 1,000 purchase orders. Aveda has
identified an ordering and receiving activity cost pool with allocated overhead of
$240,000 for which the cost driver is purchase orders. Direct labor hours used on each
product are 50,000 for P1, 40,000 for Q2, and 110,000 for R3. How much ordering and
receiving overhead is assigned to each product using activity-based costing?
P1
A)
Q2
$54,000 $60,000
R3
$126,000
B)
$80,000 $80,000
$80,000
10
C)
$48,000 $72,000 $120,000
D) $60,000 $48,000 $132,000
030 2188
000 01c2
25. Urban Products Co. incurs $1,050,000 of overhead costs each year in its three main
departments, machining ($600,000), inspections ($300,000) and packing ($150,000).
The machining department works 4,000 hours per year, there are 600 inspections per
year, and the packing department packs 1,000 orders per year. Information about Urban's
two products is
of
follows:
1A
esion
00
Product Y
3,000
500
Product X
1,000
100
Machining hours
Inspections
Orders packed
Direct labor hours
o
costs.
Sh
650
350
1,800
1,700
po
If traditional costing based on direct labor hours is used, how much overhead is assigned
to Product X this year?
A) $252,501
B) $525,000
C) $363,462
D) $510,000
QEA
CD
Joanoo i eanssauhtco
(G
esbivang
Yo ihonsd
baSh3
.BESA
3000
b u elg
foo
1Svn
ovhb
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