eters, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requires 000 purchase orders. Peters has identified an ordering and receiving activity cost pool with allocated overhead of $315000 for which me cost driver is purchase orders. Direct labor hours used on each product are 50000 for P1, 40000 for Q2, and 110000 for R3. How much ordering and receiving overhead is assigned to each product? P1 O $78750 $70875 O $63000 $105000 02 $63000 $78750 $94500 $105000 R3 $173250 $165375 $157500 $105000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Peters, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requires
1000 purchase orders. Peters has identified an ordering and receiving activity cost pool with allocated overhead of $315000 for which
the cost driver is purchase orders. Direct labor hours used on each product are 50000 for P1, 40000 for Q2. and 110000 for R3. How
much ordering and receiving overhead is assigned to each product?
P1
$78750
O $70875
$63000
$105000
02
$63000
$78750
$94500
$105000
R3
$173250
$165375
$157500
$105000
Transcribed Image Text:Peters, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requires 1000 purchase orders. Peters has identified an ordering and receiving activity cost pool with allocated overhead of $315000 for which the cost driver is purchase orders. Direct labor hours used on each product are 50000 for P1, 40000 for Q2. and 110000 for R3. How much ordering and receiving overhead is assigned to each product? P1 $78750 O $70875 $63000 $105000 02 $63000 $78750 $94500 $105000 R3 $173250 $165375 $157500 $105000
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