ABC Company uses activity-based costing to determine products costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Activity cost pools (and activity measures) Depreciation (allocated based on machine-hours) Estimated Overhead costs $67,500 Batch setup (allocated based on # of set ups) General Factory (allocated based on direct labor hours) 273,700 204,000 Expected Activity (Allocation base) Product y Activity Cost pool Depreciation Batch setup General factory Vhat is the total Manufacturing overhead allocated to product y? Total Product x 5000 m hours 4000 1000 7000 set ups 3000 4000 8000 dl hours 1000 7000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ABC Company uses activity-based costing to determine products costs for external financial reports. The
has provided the following data concerning its acțivity-based costing system:
company
Activity cost pools (and
activity measures)
Depreciation (allocated
based on machine-hours)
Estimated Overhead costs
$67,500
Batch setup (allocated based
on # of set ups)
273,700
General Factory (allocated
based on direct labor hours)
204,000
Expected Activity (Allocation base)
Product y
Activity Cost pool
Depreciation
Batch setup
General factory
What is the total Manufacturing overhead allocated to product y?
Total
Product x
5000 m hours
4000
1000
7000 set ups
3000
4000
8000 dl hours
1000
7000
Transcribed Image Text:ABC Company uses activity-based costing to determine products costs for external financial reports. The has provided the following data concerning its acțivity-based costing system: company Activity cost pools (and activity measures) Depreciation (allocated based on machine-hours) Estimated Overhead costs $67,500 Batch setup (allocated based on # of set ups) 273,700 General Factory (allocated based on direct labor hours) 204,000 Expected Activity (Allocation base) Product y Activity Cost pool Depreciation Batch setup General factory What is the total Manufacturing overhead allocated to product y? Total Product x 5000 m hours 4000 1000 7000 set ups 3000 4000 8000 dl hours 1000 7000
ABC Company uses activity-based costing to determine products costs for external financial reports. The
company has provided the following data concerning its activity-based costing system:
Activity cost pools (and
activity measures)
Depreciation (allocated
based on machine-hours)
Estimated Overhead costs
$67,500
Batch setup (allocated based
on # of set ups)
273,700
General Factory (allocated
based on direct labor hours)
204,000
Expected Activity (Allocation base)
Activity Cosi pool
Depreciation
Batch setup
General factory
What is the total Manufacturing overhead allocated to product x?
Total
Product x
Product
5000 m hours
3000
2000
7000 set ups
3000
4000
8000 dl hours
2000
6000
Transcribed Image Text:ABC Company uses activity-based costing to determine products costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Activity cost pools (and activity measures) Depreciation (allocated based on machine-hours) Estimated Overhead costs $67,500 Batch setup (allocated based on # of set ups) 273,700 General Factory (allocated based on direct labor hours) 204,000 Expected Activity (Allocation base) Activity Cosi pool Depreciation Batch setup General factory What is the total Manufacturing overhead allocated to product x? Total Product x Product 5000 m hours 3000 2000 7000 set ups 3000 4000 8000 dl hours 2000 6000
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