Question

Boyle, Inc., makes two products, X and Y, that require allocation of indirect manufacturing costs. The following data were compiled by the accountant before making any allocations:
The total cost of setting up manufacturing processes and equipment is $400,000. The company uses a job-costing system with a single indirect cost rate. Under this system, allocated costs were $300,000 and $100,000 for X and Y, respectively. If an activity-based costing system is used, what would be the allocated costs for each product?
Product X Product Y
a. $100,000 ... $300,000
b. $150,000 ... $250,000
c. $200,000 ... $200,000
d. $250,000 ... $150,000


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  • CreatedSeptember 01, 2015
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