View Policies Current Attempt in Progress 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 $210000 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? Q2 R3 P1 $52500 $110250 $47250 $42000 $63000 $105000 $52500 $42000 $115500 $70000 $70000 570000
View Policies Current Attempt in Progress 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 $210000 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? Q2 R3 P1 $52500 $110250 $47250 $42000 $63000 $105000 $52500 $42000 $115500 $70000 $70000 570000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:View Policies
Current Attempt in Progress
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 $210000 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?
Q2
R3
P1
$52500
$110250
$47250
$42000
$63000
$105000
$52500
$42000
$115500
$70000
$70000
570000
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