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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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