Overhead Expected Activity Product V Product W Product X Activities and Activity Measures Machine setups (setups) Processing customer orders (orders) Assembling products (assembly-hours) $9,178.00 Cost $7,234.50 $3,565.50 69 12 10 20 21 492 697 111 1. If the company allocates overhead to products using assemblu hourm
Overhead Expected Activity Product V Product W Product X Activities and Activity Measures Machine setups (setups) Processing customer orders (orders) Assembling products (assembly-hours) $9,178.00 Cost $7,234.50 $3,565.50 69 12 10 20 21 492 697 111 1. If the company allocates overhead to products using assemblu hourm
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 21E: Refer to the data in Exercise 7.20. The company has decided to use the sequential method of...
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1,2,3
![Answer Question 1-3 using the following data.
A company has the following overhead costs and activities:
Estimated
Overhead
Expected Activity
Product V Product W Product X
Activities and Activity Measures
Machine setups (setups)
Processing customer orders (orders)
Assembling products (assembly-hours) $9,178.00
Cost
$7,234.50
$3,565.50
69
12
10
20
9.
21
492
697
111
If the company allocates overhead to products using assembly hours as the single
allocation base, how much overhead will be allocated to product X?
A. $1,706
1.
В.
$784
C. $618
D. $304
2.
How much overhead cost would be assigned to Product V using the activity-based costing
system?
A. $158
B. $91,722
C. $10,385
D. $5,485
After changing from the traditional costing system that uses assembly hours as the single
allocation base to activity-based costing, overhead costs assigned to Product W would be:
A. increased by $5,803.
B. increased by $4,194.
C. decreased by $5,803.
decreased by $4,194.
3.
D.
MAR
16](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e76a8b3-698b-4696-bef8-accaaa40b29e%2F621baf20-05ef-46dc-90e6-c2ca27809834%2Fr9896xl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Answer Question 1-3 using the following data.
A company has the following overhead costs and activities:
Estimated
Overhead
Expected Activity
Product V Product W Product X
Activities and Activity Measures
Machine setups (setups)
Processing customer orders (orders)
Assembling products (assembly-hours) $9,178.00
Cost
$7,234.50
$3,565.50
69
12
10
20
9.
21
492
697
111
If the company allocates overhead to products using assembly hours as the single
allocation base, how much overhead will be allocated to product X?
A. $1,706
1.
В.
$784
C. $618
D. $304
2.
How much overhead cost would be assigned to Product V using the activity-based costing
system?
A. $158
B. $91,722
C. $10,385
D. $5,485
After changing from the traditional costing system that uses assembly hours as the single
allocation base to activity-based costing, overhead costs assigned to Product W would be:
A. increased by $5,803.
B. increased by $4,194.
C. decreased by $5,803.
decreased by $4,194.
3.
D.
MAR
16
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