Question

Overhead costs: Equipment expense Indirect labor $68,000 $11,300 Distribution of Resource Consumption Across Activity Cost Pools: Oth Activity Cost Pools Processing Supervising 0.30 0.30 0.40 0.50 Equipment expense Indirect labor Other 0.20 0.30 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: Activity: Product F6 Product Xo Total MHS (Processing) 17,500 1,920 19,420 Batches (Supervising) 980 1,140 2,120 What is the overhead cost assigned to Product XO under activity-based costing? (Round your Intermediate calculations to 2 decimal places.)

Answer 1

Determination of Processing and Supervising cost :- Particular Amounts Processing cost : Equipment expenses (68000*0.30) Indirect labor (11300*0.30) Total Processing cost 20,400 3,390 23,790 34,000 Supervising cost :- Equipment expenses (68000*0.50) Indirect labor (11300*0.40) Total Supervising cost 4,520 38,520 Determination of Overhead rates :- Particular Processing 23,790 Supervising 38,520 19,420 Total overhead cost (A) Total machine hours (B) Total batches (B) Predetermined overhead rate (A/B) 2,120 1.23 18.17 Determination of Overhead cost assigned to Product X0:- Particular Processing Processingt cost (1.23*1920) 2,362 Supervising cost (18.1741140) 20,714 Total overhead cost assigned 23,075 Answer is $ 23,075/.