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What is the overhead cost assigned to Product XO under activity-based costing? (Round your intermediate calculations to 2 decimal places.) Multiple Choice O о O $989 $27,588 $17,610 $16,621

What is the overhead cost assigned to Product XO under activity-based costing? (Round your intermediate calculations to 2 decimal places.) Multiple Choice O о O $989 $27,588 $17,610 $16,621

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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What is the overhead cost assigned to Product XO under activity-based costing? (Round your intermediate calculations to 2 decimal places.) Multiple Choice O O O O $989 $27,588 $17,610 $16,621
Transcribed Image Text:What is the overhead cost assigned to Product XO under activity-based costing? (Round your intermediate calculations to 2 decimal places.) Multiple Choice O O O O $989 $27,588 $17,610 $16,621
Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment expense Indirect labor Distribution of Resource Consumption Across Activity Cost Pools: Equipment expense Indirect labor Activity: Product F6 Product XO Total Processing 0.30 0.30 $ 48,000 $ 7,300 Activity Cost Pools Supervising 0.60 0.40 Processing costs are assigned to products using machine-hours (MHS) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: MHS (Processing) 18,100 1,150 19, 250 Other 0.10 0.30 Batches (Supervising) 890 980 1,870
Transcribed Image Text:Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment expense Indirect labor Distribution of Resource Consumption Across Activity Cost Pools: Equipment expense Indirect labor Activity: Product F6 Product XO Total Processing 0.30 0.30 $ 48,000 $ 7,300 Activity Cost Pools Supervising 0.60 0.40 Processing costs are assigned to products using machine-hours (MHS) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: MHS (Processing) 18,100 1,150 19, 250 Other 0.10 0.30 Batches (Supervising) 890 980 1,870
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