cost pools--Processing, Setting Up, and Other. The company's overhead costs consist of equipment depreciation and indirect labor and are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation totals $65,000 and indirect labor totals $3,500. Data concerning the distribution of resource consumption across activity cost pools appear below: Equipment depreciation Indirect labor Equipment depreciation Indirect labor Total Processing 0.65 0.30 Required: Assign overhead costs to activity cost pools using activity-based costing. Processing $ Activity Cost Pools Setting Up 0 $ Setting Up 0.10 0.20 0 S Other 0 SA S Other 0.25 0.50 S Total 0 0 0
cost pools--Processing, Setting Up, and Other. The company's overhead costs consist of equipment depreciation and indirect labor and are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation totals $65,000 and indirect labor totals $3,500. Data concerning the distribution of resource consumption across activity cost pools appear below: Equipment depreciation Indirect labor Equipment depreciation Indirect labor Total Processing 0.65 0.30 Required: Assign overhead costs to activity cost pools using activity-based costing. Processing $ Activity Cost Pools Setting Up 0 $ Setting Up 0.10 0.20 0 S Other 0 SA S Other 0.25 0.50 S Total 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Savita
Transcribed Image Text:Moorman Corporation has an activity-based costing system with three activity
cost pools--Processing, Setting Up, and Other. The company's overhead costs
consist of equipment depreciation and indirect labor and are allocated to the
cost pools in proportion to the activity cost pools' consumption of resources.
Equipment depreciation totals $65,000 and indirect labor totals $3,500. Data
concerning the distribution of resource consumption across activity cost pools
appear below:
Equipment depreciation
Indirect labor
Equipment depreciation
Indirect labor
Total
Processing
0.65
0.30
Required:
Assign overhead costs to activity cost pools using activity-based costing.
GA
Processing Setting Up
$
Activity Cost Pools
0 $
Setting Up
0.10
0.20
0 $
Other
$
SA
$
GAGA
Other
0.25
0.50
0 $
Total
0
0
0
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