Vedd Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost "ools as follows: Processing, $27,200; Supervising, $9,3000; and Other, $9,500. Processing costs are assigned to products using machine-hours (MHs) and Supervising osts are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: Batches MHS (Processing) (Supervising) Product 06 9,200 500 Product D7 10,80е 1,500 Total 20,000 2,000 /hat is the overhead cost assigned to Product 06 under activity-based costing? Multiple Choice $12,512 $14,837 $23,000 $2,325

Vedd Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost "ools as follows: Processing, $27,200; Supervising, $9,3000; and Other, $9,500. Processing costs are assigned to products using machine-hours (MHs) and Supervising osts are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: Batches MHS (Processing) (Supervising) Product 06 9,200 500 Product D7 10,80е 1,500 Total 20,000 2,000 /hat is the overhead cost assigned to Product 06 under activity-based costing? Multiple Choice $12,512 $14,837 $23,000 $2,325

Name: Wedd Corporation uses activity-based costing to assign overhead costs
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Description: Wedd Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity costpools as follows: Processing, $27,200; Supervising, $9,300; and Other, $9,500. Processi

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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Shalom Company uses three activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead costs are as follows: product design P40,000; machining P300,000; and material handling P100,000. The cost drivers and estimated use are as follows: Activity Cost Pools Activities Product design Number of product changes Machining Machine hours Material handling Number of set-ups X Estimated Use of Cost Driver Per Activity Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. 10 150,000 100 What is the activity-based overhead rate for material handling? J
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