Meester Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other in the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment depreciation Supervisory expense $ 86,300 $ 7,400 Distribution of Resource Consumption Across Activity Cost Pools: Equipment depreciation Supervisory expense Activity Cost Pools Product MO Product H2 Total Machining Order Filling 0.60 0.60 0.30 0.20 Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: MHS (Machining) 1,960 9,260 11,220 Other 0.10 0.20 Orders (Order Filling) 1,040 1,430 2,470 R What is the overhead cost assigned to Product H2 under activity-based costing? (Round your intermediate calculations to 2 decimal places) QQ ស

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

Please do not give solution in image format thanku 

Meester Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other in the first stage allocations,
costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource
consumption. Data used in the first stage allocations follow:
Overhead costs:
Equipment depreciation
Supervisory expenne
$ 86,300
$ 7,400
Distribution of Resource Consumption Across Activity Cost Pools:
Equipment depreciation
Supervisory expense
Activity Cost Pools
Product MO
Product H2
Total
Machining Order Filling
0.60
0.60
0.30
0.20
Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The
costs in the other activity cost pool are not assigned to products. Activity data for the company's two products follow:
Activity:
MHS (Machining)
1,960
9,260
11,220
Other
0.10
0.20
Orders (Order
Filling)
1,040
1,430
2,470
R
What is the overhead cost assigned to Product H2 under activity-based costing? (Round your intermediate calculations to 2 decimal places)
QQ
D
Transcribed Image Text:Meester Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other in the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment depreciation Supervisory expenne $ 86,300 $ 7,400 Distribution of Resource Consumption Across Activity Cost Pools: Equipment depreciation Supervisory expense Activity Cost Pools Product MO Product H2 Total Machining Order Filling 0.60 0.60 0.30 0.20 Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: MHS (Machining) 1,960 9,260 11,220 Other 0.10 0.20 Orders (Order Filling) 1,040 1,430 2,470 R What is the overhead cost assigned to Product H2 under activity-based costing? (Round your intermediate calculations to 2 decimal places) QQ D
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Cost allocation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education