Weirick, Inc., manufactures and sells two products: Product T8 and Product P4. The company has an activity-based
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Question:
Weirick, Inc., manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated | Expected Activity | |||||
Activity Cost Pools | Activity Measures | Overhead Cost | Product T8 | Product P4 | Total | |
Labor-related | DLHs | $ | 127,500 | 3,600 | 1,800 | 5,400 |
Production orders | orders | 60,110 | 700 | 400 | 1,100 | |
Order size | MHs | 940,160 | 4,000 | 3,100 | 7,100 | |
$ | 1,127,770 | |||||
The total overhead applied to Product P4 under activity-based costing is closest to:
a. $880,050
b. $410,502
c. $474,860
d. $1,000,270
Related Book For
Financial Accounting
ISBN: 978-0324645576
10th edition
Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice
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