Moorman Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The company's overhead costs consist of equipment depreciation and indirect labor and are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation totals $69,000 and indirect labor totals $5,500. Data concerning the distribution of resource consumption across activity cost pools appear below: Processing 0.65 Setting Up 0.10 0.30 Other Equipment depreciation Indirect labor 0.25 0.30 0.40 Required: Assign overhead costs to activity cost pools using activity-based costing. Activity Cost Pools Processing Setting Up Other Total Equipment depreciation Indirect labor $ $ Total $ 2$ $ $
Moorman Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The company's overhead costs consist of equipment depreciation and indirect labor and are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation totals $69,000 and indirect labor totals $5,500. Data concerning the distribution of resource consumption across activity cost pools appear below: Processing 0.65 Setting Up 0.10 0.30 Other Equipment depreciation Indirect labor 0.25 0.30 0.40 Required: Assign overhead costs to activity cost pools using activity-based costing. Activity Cost Pools Processing Setting Up Other Total Equipment depreciation Indirect labor $ $ Total $ 2$ $ $
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Moorman Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The
company's overhead costs consist of equipment depreciation and indirect labor and are allocated to the cost pools in proportion to
the activity cost pools' consumption of resources. Equipment depreciation totals $69,000 and indirect labor totals $5,500. Data
concerning the distribution of resource consumption across activity cost pools appear below:
Equipment depreciation
Indirect labor
Processing
0.65
0.40
Setting Up
0.10
0.30
Other
0.25
0.30
Required:
Assign overhead costs to activity cost pools using activity-based costing.
Activity Cost Pools
Processing
Setting Up
Other
Total
Equipment depreciation
$
Indirect labor
$
Total
$
$
$
2$
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