Peters, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requires 1000 purchase orders. Peters has identified an ordering and receiving activity cost pool with allocated overhead of $420000 for which the cost driver is purchase orders. Direct labor hours used on each product are 50000 for P1, 40000 for Q2, and 110000 for R3. How much ordering and receiving overhead is assigned to each product? P1 $94500 $105000 $84000 $140000 Q2 $105000 $84000 $126000 $140000 R3 $220500 $231000 $210000 $140000

Peters, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requires 1000 purchase orders. Peters has identified an ordering and receiving activity cost pool with allocated overhead of $420000 for which the cost driver is purchase orders. Direct labor hours used on each product are 50000 for P1, 40000 for Q2, and 110000 for R3. How much ordering and receiving overhead is assigned to each product? P1 $94500 $105000 $84000 $140000 Q2 $105000 $84000 $126000 $140000 R3 $220500 $231000 $210000 $140000

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Description: Peters, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requires1000 purchase orders. Peters has identified an ordering and receiving activity cost pool with allocated overhead of $4

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Peters, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requires
1000 purchase orders. Peters has identified an ordering and receiving activity cost pool with allocated overhead of $420000 for which
the cost driver is purchase orders. Direct labor hours used on each product are 50000 for P1, 40000 for Q2, and 110000 for R3. How
much ordering and receiving overhead is assigned to each product?
O
P1
$94500
$105000
$84000
$140000
92
$105000
$84000
$126000
$140000
R3
$220500
$231000
$210000
$140000
Que
Accou
Que
Multip
Ques
Muttpl
Quest
Multiple
Quest
Multiple
Viewin
Questio
HOM

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Please help me. Thankyou.
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