Newtown Inc., manufactures and sells two products: Product U5 and Product X2. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product U5 Product X2 Total Labour-related DLHs $36,180 2,400 1,200 3,600 Product testing tests 65,760 400 600 1,000 General factory MHs 133,984 4,000 3,900 7,900 $235,924 The total overhead applied to Product X2 under activity-based costing is closest to: a. $157,272 b. $141,555 c. $117,660 d. $67,839
Newtown Inc., manufactures and sells two products: Product U5 and Product X2. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product U5 Product X2 Total Labour-related DLHs $36,180 2,400 1,200 3,600 Product testing tests 65,760 400 600 1,000 General factory MHs 133,984 4,000 3,900 7,900 $235,924 The total overhead applied to Product X2 under activity-based costing is closest to: a. $157,272 b. $141,555 c. $117,660 d. $67,839
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Newtown Inc., manufactures and sells two products: Product U5 and Product X2. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
| Estimated | Expected Activity | ||||
| Activity Cost Pools | Activity Measures | Product U5 | Product X2 | Total |
|
| Labour-related | DLHs | $36,180 | 2,400 | 1,200 | 3,600 |
| Product testing | tests | 65,760 | 400 | 600 | 1,000 |
| General factory | MHs | 133,984 | 4,000 | 3,900 | 7,900 |
| $235,924 |
The total overhead applied to Product X2 under activity-based costing is closest to:
a. $157,272
b. $141,555
c. $117,660
d. $67,839
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