Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided
Question:
Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:
Activity Cost Pool (and Activity Measure) Total Cost
Machine related (machine-hours) $132,000
Batch setup (setups) $494,250
Order size (direct labor-hours) $94,350
Total Activity
Activity Cost Pools Product X Product Y Total
Machine related 1,100 6,400 7,500
Batch setup 3,400 4,100 7,500
Order size 6,300 2,200 8,500
The total amount of overhead cost allocated to Product X would be closest to:
Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan