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)	$	123,000
Batch setup (setups)	$	497,250
Order size (direct labor-hours)	$	96,050

	Total Activity
Activity Cost Pools	Product X	Product Y	Total
Machine related	1,300	6,200	7,500
Batch setup	2,800	4,700	7,500
Order size	6,300	2,200	8,500

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

rev: 03_17_2018_QC_CS-119201

Garrison 16e Rechecks 2018-07-24

Multiple Choice

• $278,150

• $497,250

• $256,830

• $438,150

Answer 1

Ans
Statement of Cost Driver Rate
Activity Cost Pools	Total Cost in $	Cost Driver	Total	Cost Driver Rate in $
Machine related	123000	Machine hours	7500	16.4
Batch setup	497250	Setups	7500	66.3
Order Size	96050	Direct labour hours	8500	11.3

Statement of Overhead Cost allocated to Product X
Particulars	Amount in$
Machine related(1300*16.4)	21320
Batch Setup(2800*66.3)	185640
Order Size(6300*11.3)	71190
Total	278150