Munar Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the

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Munar Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Machining. Order filling, and other. The costs in those activity cost pools appear below:
Machining............................$6.649
Order Filling.........................$17.440
Other..................................$5,800
Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the other activity cost pool are not assigned to products. Activity data appear below:
MHs (Machining) Orders (Order Filling) Z3 2.200 X6 8300 Product 130 960 Product

Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.

Produce Z3 Product X6 Sales (total) Direct materials (total) $76.600 S70.100 S31.800 $21.000 Direct labor (total) $30.60

What is the overhead cost assigned to Product to Product X6 under activity-based costing?
€¢ $13,800
€¢ $5,307
€¢ $15,360
€¢ $20,667

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Managerial Accounting

ISBN: 978-0078111006

14th edition

Authors: Ray Garrison, Eric Noreen and Peter Brewer

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