Delight Business Ltd (DIB) manufactures two products, Product L11 and Product L12. The company is considering adopting an activity-based costing system with the following activity pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Estimated Overhead Cost Product L11 Product L12 Total Machine setups required $200,000 600 1,400 2,000 Purchase orders issued 38,382 500 100 600 Machine-hours required 92,650 6,800 10,200 17,000 $331,032 The amount overhead costs assigned to Product L12 would be closest to: Question 15 options: 1) $165,516 2) $201,987 3) $200,274 4) $331,032
Delight Business Ltd (DIB) manufactures two products, Product L11 and Product L12. The company is considering adopting an activity-based costing system with the following activity pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Estimated Overhead Cost Product L11 Product L12 Total Machine setups required $200,000 600 1,400 2,000 Purchase orders issued 38,382 500 100 600 Machine-hours required 92,650 6,800 10,200 17,000 $331,032 The amount overhead costs assigned to Product L12 would be closest to: Question 15 options: 1) $165,516 2) $201,987 3) $200,274 4) $331,032
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Delight Business Ltd (DIB) manufactures two products, Product L11 and Product L12. The company is considering adopting an activity-based costing system with the following activity pools, activity measures, and expected activity:
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Expected Activity
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Activity Cost Pools
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Estimated
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Product L11
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Product L12
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Total |
Machine setups required
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$200,000
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600
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1,400
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2,000
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Purchase orders issued
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38,382
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500
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100
|
600
|
Machine-hours required
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92,650
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6,800
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10,200
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17,000
|
|
$331,032
|
|
|
|
The amount overhead costs assigned to Product L12 would be closest to:
Question 15 options:
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