XAA is considering different costing options. They are now using a traditional costing procedures which applies overhead on the basis of machine hours. They have two products, A and B. XAA is considering a shift to activity-based costing and has created three cost pools. Data on the cost pools and respective driver are shown below. Pool 1 Pool 2 Pool 3 Driver: Machine Driver: Driver: Product hour setup parts 1,200- 2,800 A 45 2,250 55 750 Pool Cost 160,000 280,000 360,000 %24 The overhead cost allocated to product A by using activity-based costing procedures would be: O a. $240,000. O b. $356,000. $444,000. Ở d. $560,000. O e. some other amount.
XAA is considering different costing options. They are now using a traditional costing procedures which applies overhead on the basis of machine hours. They have two products, A and B. XAA is considering a shift to activity-based costing and has created three cost pools. Data on the cost pools and respective driver are shown below. Pool 1 Pool 2 Pool 3 Driver: Machine Driver: Driver: Product hour setup parts 1,200- 2,800 A 45 2,250 55 750 Pool Cost 160,000 280,000 360,000 %24 The overhead cost allocated to product A by using activity-based costing procedures would be: O a. $240,000. O b. $356,000. $444,000. Ở d. $560,000. O e. some other amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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XAA is considering different costing options. They are now using a traditional costing procedures which applies overhead on the basis
of machine hours. They have two products, A and B. XAA is considering a shift to activity-based costing and has created three cost
pools. Data ón the cost pools and respective driver are shown below.
Pool 1
Pool 2
Pool 3
Driver: Machine
Driver:
Driver:
Product
hour
setup
parts
2,250
A
1,200-
45
2,800
55
750
Pool Cost
160,000
280,000
360,000
$4
The overhead cost allocated to product A by using activity-based costing procedures would be:
O a. $240,000.
O b. $356,000.
O c. $444,000.
o d. $560,000.
O e. some other amount.
O Type here to search
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