Question: 5 SA company uses an activity-based costing system with three activity cost pools: Production, Fulfillment, und Other. In the first stage allocations, costs in the
SA company uses an activity-based costing system with three activity cost pools: Production, Fulfillment, und Other. In the first stage allocations, costs in the two overhead accounts (Equipment expense and Supervision expense) are allocated to the activity cost pools based on resource consumption. Data used in the first stage allocations follow: Equipment expense Supervision expense Cost 90,000 45,000 S S Distribution of resource consumption Production Fulfillment Other 50% 45% 40% 35% 25% 5% Production costs are then assigned to the company's products using machine-hours (MH), while Fulfillment costs are assigned to products using the number of orders. Other costs are not assigned to products. Activity for the company's only two products for the period are shown below: MHs of Orders Product 1 17.000 8,000 19,000 7,000 Totul 36,000 15,000 Product 2 Given this information, how much Elfillment cost would be assigned to Product2? A. S 30,000 . $ 26,250 CS 29,750 DS 33.250 E None of the above is correct
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