Question

Hagy Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Data concerning the company's costs and activity-based costing system appear below: Factory utilities (total) Indirect labor (total) $100,000 $ 13,500 Distribution of Resource Consumption Across Activity Cost Pools Processing Setting Up 0.40 0.50 0. 100 .20 other 0.10 Factory utilities Indirect labor Required: Assign overhead costs to activity cost pools using activity based costing. Activity Cost Pools Processing Setting Up Other Total Factory utilities Indirect labor Total

Answer 1

Answer

	Processing	Setting up	Other	Total
Factory Utilities	$40,000	$50,000	$10,000	$100,000
Indirect Labor	$1,350	$2,700	$9,450	$13,500
Total	$41,350	$52,700	$19,450	$113,500

--Working

	Processing	Setting up	Other	Total
Factory Utilities	=100000*0.4	=100000*0.5	=100000*0.1	=SUM(C56983:E56983)
Indirect Labor	=13500*0.1	=13500*0.2	=13500*0.7	=SUM(C56984:E56984)