A manufacturer produces three products: A, B, and C. The company uses the following to determine activity rates for each period: Cost pool Costs Total Activity Pool 1 $300,000 20,000 hours Pool 2 $20,000 500 pounds Pool 3 $10,000 100 moves Total $330,000 Data concerning the three products appear below: Products A Products B Products C Cost Driver Number of hours 10,000 Number of pounds 150 Number of moves 20 7,500 250 50 2,500 100 50 What is the total amount of overhear applied to product A? a. 265,000 b. 125,500 c. 150,000 d. 158,000

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 4P: Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2....
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A manufacturer produces three products: A, B, and C. The company uses the
following to determine activity rates for each period:
Cost pool Costs
Total Activity
Pool 1
$300,000
20,000 hours
Pool 2
$20,000
500 pounds
Pool 3
$10,000
100 moves
Total
$330,000
Data concerning the three products appear below:
Products A Products B Products C
Cost Driver
Number of hours
10,000
Number of pounds
150
Number of moves
20
7,500
250
50
2,500
100
50
What is the total amount of overhear applied to product A?
a. 265,000
b. 125,500
c. 150,000
d. 158,000
Transcribed Image Text:A manufacturer produces three products: A, B, and C. The company uses the following to determine activity rates for each period: Cost pool Costs Total Activity Pool 1 $300,000 20,000 hours Pool 2 $20,000 500 pounds Pool 3 $10,000 100 moves Total $330,000 Data concerning the three products appear below: Products A Products B Products C Cost Driver Number of hours 10,000 Number of pounds 150 Number of moves 20 7,500 250 50 2,500 100 50 What is the total amount of overhear applied to product A? a. 265,000 b. 125,500 c. 150,000 d. 158,000
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