Second-Stage Allocation
Lamer Corporation is a diversified manufacturer of industrial goods. The company’s activity-based costing system contains the following six activity cost pools and activity rates:
Activity Cost Pool | Activity Rates | |
Supporting direct labor | $7.00 | per direct labor-hour |
Machine processing | $3.00 | per machine-hour |
Machine setups | $40.00 | per setup |
Production orders | $160.00 | per order |
Shipments | $120.00 | per shipment |
Product sustaining | $800.00 | per product |
Activity data have been supplied for the following products:
| Total Expected Activity | |
| J78 | W52 |
Direct labor-hours | 1,000 | 40 |
Machine-hours | 3,200 | 30 |
Machine setups | 5 | 1 |
Production orders | 5 | 1 |
Shipments | 10 | 1 |
Product sustaining | 1 | 1 |
Required:
Determine the total overhead cost that would be assigned to each of the products listed above in the activity-based costing system.
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