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Boudoin Corporation manufactures two products: Product T72T and Product L.34S. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products T72T and L34S. Activity Cost Pool Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Total Cost $345,000 $180,000 $94,000 $280,000 Product T72T Product L34S 8,000 7,000 320 130 1 1 4,000 6,000 Total Activity 15,000 MHs 450 setups 2 products 10,000 DLHs Required: a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product T721? b. Using the ABC system, what percentage of the total overhead cost is assigned to Product 1.34S?

Boudoin Corporation manufactures two products: Product T72T and Product L.34S. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products T72T and L34S. Activity Cost Pool Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Total Cost $345,000 $180,000 $94,000 $280,000 Product T72T Product L34S 8,000 7,000 320 130 1 1 4,000 6,000 Total Activity 15,000 MHs 450 setups 2 products 10,000 DLHs Required: a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product T721? b. Using the ABC system, what percentage of the total overhead cost is assigned to Product 1.34S?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Boudoin Corporation manufactures two products: Product T72T and Product L34S. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products T72T and L34S. Activity Cost Pool Machining Machine setups Product design General factory 1 Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Total Cost $345,000 $180,000 $94,000 $280,000 Product T72T Product L34S) 8,000 7,000 320 130 1 4,000 1 6,000 Total Activity 15,000 MHs 450 setups 2 products 10,000 DLHs Required: a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product T721? b. Using the ABC system, what percentage of the total overhead cost is assigned to Product 1.34S? K LINDE
Transcribed Image Text:Boudoin Corporation manufactures two products: Product T72T and Product L34S. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products T72T and L34S. Activity Cost Pool Machining Machine setups Product design General factory 1 Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Total Cost $345,000 $180,000 $94,000 $280,000 Product T72T Product L34S) 8,000 7,000 320 130 1 4,000 1 6,000 Total Activity 15,000 MHs 450 setups 2 products 10,000 DLHs Required: a. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product T721? b. Using the ABC system, what percentage of the total overhead cost is assigned to Product 1.34S? K LINDE
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