Eagle Eye Company produces two types of lenses–L7 and L9. Single Indirect-Cost Pool System ABC System...
Eagle Eye Company produces two types of lenses–L7 and L9.
Single Indirect-Cost Pool System ABC System
Total direct costs. $77,500 $58,000
Total indirect costs $37,500. (a)
Total costs assigned to L7. $62,000. $49,500
Total costs assigned to L9. (b) $65,500
What is the total indirect costs (a) under ABC system?
Can you please explain step by step?
Thank you
Homework Answers
| ABC System | |||
| Total cost assigned to L7 | $ 49,500 | ||
| Add: | Total cost assigned to L9 | $ 65,500 | |
| Total Cost | $ 1,15,000 | ||
| Less: | Direct cost | $ -58,000 | |
| Indirect cost (a) | $ 57,000 | ||
| Therefore, (a) = $57,000 | |||
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Eagle Eye Company produces two types of lenses–L7 and L9.
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