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 expense$ 81,300Supervisory expense$ 2,200 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost PoolsMachiningOrder FillingOtherEquipment expense0.500.300.20Supervisory expense0.500.200.30 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)Orders (Order Filling)Product M01,6301,370Product H29,7801,630Total11,4103,000 What is the overhead cost assigned to Product H2 under activity-based costing? Meester Corporation uses an activity-based costing system with three activity cost pools—Machining, Order Filling, and Other. In the first stage, costs from two overhead accounts, equipment depreciation and supervisory expense, are allocated to these three activity cost pools based on resource consumption. The data used in the first stage allocations are as follows:### Overhead Costs:- **Equipment expense**: $81,300- **Supervisory expense**: $2,200### Distribution of Resource Consumption Across Activity Cost Pools:| | Machining | Order Filling | Other ||-------------------------|-----------|---------------|-------|| **Equipment expense** | 0.50 | 0.30 | 0.20 || **Supervisory expense** | 0.50 | 0.20 | 0.30 |Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. Costs in the Other activity cost pool are not assigned to products. The activity data for the company's two products is as follows:### Activity Data:| | MHs (Machining) | Orders (Order Filling) ||------------|-----------------|------------------------|| **Product M0** | 1,630 | 1,370 || **Product H2** | 9,780 | 1,630 || **Total** | 11,410 | 3,000 |**Question**: What is the overhead cost assigned to Product H2 under activity-based costing? (Round your intermediate calculations to 2 decimal places.)

Machining Order filling Other Equipment expense 40,650 24,390 16,260 Supervisory expense…

Answered: Meester Corporation has an…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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 allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Overhead costs:
Equipment expense	$ 81,300
Supervisory expense	$ 2,200

Distribution of Resource Consumption Across Activity Cost Pools:

	Activity Cost Pools
Machining	Order Filling	Other
Equipment expense	0.50	0.30	0.20
Supervisory expense	0.50	0.20	0.30

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)	Orders (Order Filling)
Product M0	1,630	1,370
Product H2	9,780	1,630
Total	11,410	3,000

What is the overhead cost assigned to Product H2 under activity-based costing?

Meester Corporation uses an activity-based costing system with three activity cost pools—Machining, Order Filling, and Other. In the first stage, costs from two overhead accounts, equipment depreciation and supervisory expense, are allocated to these three activity cost pools based on resource consumption. The data used in the first stage allocations are as follows:

### Overhead Costs:
- **Equipment expense**: $81,300
- **Supervisory expense**: $2,200

### Distribution of Resource Consumption Across Activity Cost Pools:

| | Machining | Order Filling | Other |
|-------------------------|-----------|---------------|-------|
| **Equipment expense** | 0.50 | 0.30 | 0.20 |
| **Supervisory expense** | 0.50 | 0.20 | 0.30 |

Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. Costs in the Other activity cost pool are not assigned to products. The activity data for the company's two products is as follows:

### Activity Data:

| | MHs (Machining) | Orders (Order Filling) |
|------------|-----------------|------------------------|
| **Product M0** | 1,630 | 1,370 |
| **Product H2** | 9,780 | 1,630 |
| **Total** | 11,410 | 3,000 |

**Question**: What is the overhead cost assigned to Product H2 under activity-based costing? (Round your intermediate calculations to 2 decimal places.)

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