Question

All help is greatly appreciated.

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) Machine related machine-hours) Batch setup (setups) Order size (direct labor-hours) Total Cost $172,800 $689,480 $137, eee Activity Cost Pools Machine related Batch setup Order size Total Activity Product X Product Y 1,600 7,400 3,100 5,900 6,600 3,4ee Total 9,000 9,000 1e, eee The total amount of overhead cost allocated to Product X would be closest to: (Do not round your intermediate calculations.) Multiple Choice O $689,400 O $327,880

Answer 1

Correct answer------------$358,600

Working

Calculation of Activity rates
Activity Cost Pool	Activity driver	Overhead Cost (A)	Expected Activity (B)	Activity rate (A/B)
Machine setup	Number of machine hour	$ 172,800	9000	$             19.20	Per machine hour
Match setup	Number of setup	$ 689,400	9000	$             76.60	Per setup
Order size	Number of Direct labor hour	$ 137,000	10000	$             13.70	Per Direct labor hour

.

Cost assigned to Product X
Activity name	Activity Rates	Activity	ABC Cost
	(A)	(B)	(A x B)
Machine setup	$           19.20	1,600.00	$ 30,720
Match setup	$           76.60	3,100.00	$ 237,460
Order size	$           13.70	6,600.00	$ 90,420
Total Overheads assigned			$           358,600.00