Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:         Activity Cost Pools (and Activity Measures Estimated  Overhead Cost Machine related (machine-hours) R81 600 Batch setup (setups). R387 000 General factory (direct labour-hours). R274 800       Expected Activity Activity Cost Pools Total Product X Product Y Machine related 8,000 3,000 5,000 Batch setup 10,000 2,000 8,000 General factory 12,000 7,000 5,000  Assuming that actual activity turns out to be the same as expected activity,  calculate the total amount of overhead cost allocated to Product X

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:  
  

 


 Activity Cost Pools (and Activity Measures

Estimated
 Overhead Cost

Machine related (machine-hours)

R81 600

Batch setup (setups).

R387 000

General factory (direct labour-hours).

R274 800

 

 

 

Expected Activity

Activity Cost Pools

Total

Product X

Product Y

Machine related

8,000

3,000

5,000

Batch setup

10,000

2,000

8,000

General factory

12,000

7,000

5,000


 Assuming that actual activity turns out to be the same as expected activity,  calculate the total amount of overhead cost allocated to Product X.

 

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