Li Corporation uses an activity-based costing (ABC) system to allocate its manufacturing overhead. All overhead has...

 

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Li Corporation uses an activity-based costing (ABC) system to allocate its manufacturing overhead. All overhead has been allocated to one of the following three activity cost pools: Estimated Annual Cost Activity Cost Pool Activity Base Machining Machine setups Other Machine-hours Number of setups Number of units produced products required the following: 5,000 200 6,000 $330,000 $290,000 $45,000 One of the company's Machine-hours Number of setups Units produced Estimated Total Activity 15,000 machine-hours 500 setups 22,500 units Using the ABC system, how much total manufacturing overhead cost would be assigned to the product? Li Corporation uses an activity-based costing (ABC) system to allocate its manufacturing overhead. All overhead has been allocated to one of the following three activity cost pools: Estimated Annual Cost Activity Cost Pool Activity Base Machining Machine setups Other Machine-hours Number of setups Number of units produced products required the following: 5,000 200 6,000 $330,000 $290,000 $45,000 One of the company's Machine-hours Number of setups Units produced Estimated Total Activity 15,000 machine-hours 500 setups 22,500 units Using the ABC system, how much total manufacturing overhead cost would be assigned to the product?

Answer rating: 100% (QA)

To determine the total manufacturing overhead cost assigned to the product using the ABC system we need to calculate the overhead cost for each activi... View the full answer