BDG Company manufactures two products (X and Y). The overhead costs (£100,000) have been divided into three cost pools that use the following activity drivers: Product Number of Setups 10 OA. £18.75 .O B. £22,500 OC. £60,000 O D. £37,500 Machine Hours 10 Packing Orders X 1,200 Y 2,000 · Cost per pool £15,000 £60,000 What is the amount of overhead cost to be assigned to Product X using Machine Hours as the activity driver in an activity-based costing system? 75 175 £25,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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BDG Company manufactures two products (X and Y). The overhead costs (£100,000) have been divided into three cost
pools that use the following activity drivers:
Product
Number of Setups
10
Machine Hours
OA. £18.75
.O B. £22,500
O C. £60,000
O D. £37,500
Packing Orders
X
1,200
Y
10
2,000
Cost per pool
£15,000
£60,000
What is the amount of overhead cost to be assigned to Product X using Machine Hours as the activity driver in an
activity-based costing system?
75
175
£25,000
Transcribed Image Text:BDG Company manufactures two products (X and Y). The overhead costs (£100,000) have been divided into three cost pools that use the following activity drivers: Product Number of Setups 10 Machine Hours OA. £18.75 .O B. £22,500 O C. £60,000 O D. £37,500 Packing Orders X 1,200 Y 10 2,000 Cost per pool £15,000 £60,000 What is the amount of overhead cost to be assigned to Product X using Machine Hours as the activity driver in an activity-based costing system? 75 175 £25,000
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