Question

Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:

Activity Cost Pool (and Activity Measure)	Total Cost
Machine related (machine-hours)	$	168,300
Batch setup (setups)	$	721,600
Order size (direct labor-hours)	$	138,000

	Total Activity
Activity Cost Pools	Product X	Product Y	Total
Machine related	1,800	9,200	11,000
Batch setup	4,100	6,900	11,000
Order size	7,000	5,000	12,000

The total amount of overhead cost allocated to Product X would be closest to: (Do not round your intermediate calculations.)

Multiple Choice

• $377,000

• $721,600

• $349,460

• $650,900

Answer 1

Cost Pool Machine Related Batch Set up order size Cost driver Overhead Machine hours $ 168,300.00 Set ups $ 721,600.00 Direct Labour hours $ 138,000.00 Cost per unit of activity 11000 $ 15.30 Per Machine hour 11000 $ 65.60 Per Set up 12000 $ 11.50 per DLH Activity Activity Cost Pools Machine Related Batch Set up order size Cost Driver rate Amount of Overhead Allocated to product X 1800 $ 15.30 $ 27,540.00 4100 S 65.60 $ 268,960.00 7000 $ 11.50 $ 80,500.00 377,000.00