Weirick, Incorporated, 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: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product T8 Product P4 Total Labor-related DLHs $ 134,500 9,600 4,800 14,400 Production orders orders 63,430 1,300 200 1,500 Order size MHs 992,100 3,100 3,900 7,000 $ 1,190,030 The total overhead applied to Product P4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $928,670 $552,747 $606,037 $1,055,530
Weirick, Incorporated, 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: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product T8 Product P4 Total Labor-related DLHs $ 134,500 9,600 4,800 14,400 Production orders orders 63,430 1,300 200 1,500 Order size MHs 992,100 3,100 3,900 7,000 $ 1,190,030 The total overhead applied to Product P4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $928,670 $552,747 $606,037 $1,055,530
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Weirick, Incorporated, 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:
| Activity Cost Pools | Activity Measures | Estimated |
Expected Activity | ||
|---|---|---|---|---|---|
| Product T8 | Product P4 | Total | |||
| Labor-related | DLHs | $ 134,500 | 9,600 | 4,800 | 14,400 |
| Production orders | orders | 63,430 | 1,300 | 200 | 1,500 |
| Order size | MHs | 992,100 | 3,100 | 3,900 | 7,000 |
| $ 1,190,030 |
The total overhead applied to Product P4 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
-
$928,670
-
$552,747
-
$606,037
-
$1,055,530
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