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 resourceconsumption. Data used in the first stage allocations follow:Overhead costs:Equipment depreciationSupervisory expenseDistribution of Resource Consumption Across Activity Cost Pools:Equipment depreciationSupervisory expense$ 80,800$ 3,700Product MOProduct H2TotalActivity Cost PoolsMachining Order Filling0.600.600.300.20Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. Thecosts in the other activity cost pool are not assigned to products. Activity data for the company's two products follow:Activity:MHS (Machining)1,3609,72011,080Other0.100.20Orders (OrderFilling)1,3801,6203,000How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing? Multiple ChoiceOOO$24,980$44,518$74,940$13,495

The predetermined overhead rate is used to apply the overhead cost to the production process. The…

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 $ 80,800 Supervisory expense $ 3,700 Distribution of Resource Consumption Across Activity Cost Pools: Equipment depreciation. Supervisory expense Product MO Product H2 Total Activity Cost Pools Machining Order Filling 0.60 0.60 MHS (Machining) 1,360 9,720 11,080 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: Other 0.10 0.20 Orders (Order Filling) 1,380 1,620 3,000 How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

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 $ 80,800 Supervisory expense $ 3,700 Distribution of Resource Consumption Across Activity Cost Pools: Equipment depreciation. Supervisory expense Product MO Product H2 Total Activity Cost Pools Machining Order Filling 0.60 0.60 MHS (Machining) 1,360 9,720 11,080 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: Other 0.10 0.20 Orders (Order Filling) 1,380 1,620 3,000 How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

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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Lion Corporation uses an activity-based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation Supervisory expense Equipment depreciation Distribution of Resource Consumption Across Activity Cost Pools: Product C9 $ 47,000 Product UO $ 6,000 Total Supervisory expense 0.60 Activity Cost Pools O $18.00 per MH O $5.30 per MH O $2.82 per MH O $3.18 per MH Mac 0.60 In the second stage, 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: 6,900 Order Filling 3,100 0.10 MHS (Machining) 10,000 b.20 200…
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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 alloceted to three activity cost pools based on resource consumption, Data used in the first stage allocations follow Overhead costs: Equipment depreciation Supervisory expense $ 81,300 $ 2,200 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation Supervisory expense 0.50 0.30 0. 20 e. 30 e.50 0.20 Mechining costs are assigned to products using machine-hours (MHs) and Order Filing costs are essigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity date for the companve o nroducts follaw You ae sren sharg Skop Share Activity MHs (Machining) Orders (Order Filling) Product Me 1,630 9,780 1,370…
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