Plata Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment S120,000 Number of setups Number of orders 300 Ordering costs Machine costs 90,000 210,000 9,000 Machine hours 21,000 Plata produces two models of microwave ovens with the following activity demands: Model X Model Y Units completed Number of setups Number of orders 8,000 4,000 200 100 3,000 12,000 6,000 9,000 Machine hours The company's normal activity is 21,000 machine hours. Calculate the total overhead cost that would be assigned to Model X using an activity-based costing system: a. $230,000 b. $240,000 c. $280,000 d. $190,000

Plata Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment S120,000 Number of setups Number of orders 300 Ordering costs Machine costs 90,000 210,000 9,000 Machine hours 21,000 Plata produces two models of microwave ovens with the following activity demands: Model X Model Y Units completed Number of setups Number of orders 8,000 4,000 200 100 3,000 12,000 6,000 9,000 Machine hours The company's normal activity is 21,000 machine hours. Calculate the total overhead cost that would be assigned to Model X using an activity-based costing system: a. $230,000 b. $240,000 c. $280,000 d. $190,000

Name: Plata Company has identified the following overhead activities, costs
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Description: Plata Company has identified the following overhead activities, costs, and activity drivers forthe coming year:ActivityExpected CostActivity DriverActivity CapacitySetting up equipmentS120,000Number of setupsNumber of orders300Ordering costsMachine

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject: Acounting