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TB MC Qu. 4-96 Welrick, Inc., manufactures and sells .. Weirick, Inc., manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Measures DLHS Overhead Activity Cost Pools Labor-related Production orders Cost Product T8 Product P4 Total $ 139,900 5,400 1, 000 8,100 1,600 7,100 2,700 orders 65,970 1,031,820 600 Order size MHS 3,100 4,000 $1,237,690 The total overhead applied to Product P4 under activity-based costing is closest to: (Round your Intermedlate calculations to 2 decimal places.) Multiple Cholce $965,850 $581,320 S652.687 < Prey B of 36 Next>

TB MC Qu. 4-96 Welrick, Inc., manufactures and sells .. Weirick, Inc., manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Measures DLHS Overhead Activity Cost Pools Labor-related Production orders Cost Product T8 Product P4 Total $ 139,900 5,400 1, 000 8,100 1,600 7,100 2,700 orders 65,970 1,031,820 600 Order size MHS 3,100 4,000 $1,237,690 The total overhead applied to Product P4 under activity-based costing is closest to: (Round your Intermedlate calculations to 2 decimal places.) Multiple Cholce $965,850 $581,320 S652.687 < Prey B of 36 Next>

FINANCIAL ACCOUNTING
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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### Activity-Based Costing at Weirick, Inc. Weirick, Inc. manufactures and sells two products: Product T8 and Product P4. The company utilizes an activity-based costing system with the following data: #### Activity Cost Pools | Activity Cost Pools | Activity Measures | Estimated Overhead Cost | Expected Activity | |---------------------------|-------------------|-------------------------|-------------------| | | | | Product T8 | Product P4 | Total | | Labor-related | DLHs | $139,990 | 5,400 | 2,700 | 8,100 | | Production orders | Orders | $66,970 | 1,000 | 600 | 1,600 | | Order size | MHs | $1,031,820 | 3,100 | 4,000 | 7,100 | | **Total** | | **$1,237,680** | | | | #### Calculation Note The total overhead applied to Product P4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) **Multiple Choice Options:** - $965,850 - $581,320 - $652,687 This table is designed to illustrate how overhead costs are allocated to different products based on specific activities, such as labor hours, production orders, and machine hours. It underscores the precision with which costs can be attributed using an activity-based costing approach.
Transcribed Image Text:### Activity-Based Costing at Weirick, Inc. Weirick, Inc. manufactures and sells two products: Product T8 and Product P4. The company utilizes an activity-based costing system with the following data: #### Activity Cost Pools | Activity Cost Pools | Activity Measures | Estimated Overhead Cost | Expected Activity | |---------------------------|-------------------|-------------------------|-------------------| | | | | Product T8 | Product P4 | Total | | Labor-related | DLHs | $139,990 | 5,400 | 2,700 | 8,100 | | Production orders | Orders | $66,970 | 1,000 | 600 | 1,600 | | Order size | MHs | $1,031,820 | 3,100 | 4,000 | 7,100 | | **Total** | | **$1,237,680** | | | | #### Calculation Note The total overhead applied to Product P4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) **Multiple Choice Options:** - $965,850 - $581,320 - $652,687 This table is designed to illustrate how overhead costs are allocated to different products based on specific activities, such as labor hours, production orders, and machine hours. It underscores the precision with which costs can be attributed using an activity-based costing approach.
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