Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders. Shipments Product sustaining Number of units produced per year Direct labor-hours Activity data have been supplied for the following two products: Machine-hours Machine setups Production orders. Shipments Product sustaining Activity Rate $7 per direct labor-hour per machine-hour $5 $ 40 $ 150 $ 110 per shipment $ 750 per product. Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost per setup per order K425 Total Expected Activity K425 M67 2,000 200 1,200 2,600 5 5 10 1 M67 50 40 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 1 1 1 1
Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders. Shipments Product sustaining Number of units produced per year Direct labor-hours Activity data have been supplied for the following two products: Machine-hours Machine setups Production orders. Shipments Product sustaining Activity Rate $7 per direct labor-hour per machine-hour $5 $ 40 $ 150 $ 110 per shipment $ 750 per product. Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost per setup per order K425 Total Expected Activity K425 M67 2,000 200 1,200 2,600 5 5 10 1 M67 50 40 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? 1 1 1 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Activity Cost Pool
Supporting direct labor
Machine processing
Machine setups
Production orders
Shipments
Product sustaining
Activity data have been supplied for the following two products:
Number of units produced per year
Direct labor-hours
Machine-hours
Machine setups
Production orders
Shipments
Product sustaining
Activity Rate
$7 per direct labor-hour
$5 per machine-hour
$ 40 per setup
$ 150 per order
$ 110 per shipment
$ 750 per product
Activity Cost Pool
Supporting direct labor
Machine processing
Machine setups
Production orders
Shipments
Product sustaining
Total overhead cost
K425
Total Expected Activity
K425
M67
2,000
200
1,200
2,600
Required:
How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system?
5
5
10
1
M67
50
40
1
1
1
1
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