Meester Corporation has an activity-based costing system with three activity cost pools: machining, order picking, and other. In the first stage assignments, the costs in the two general accounts, equipment depreciation and supervision expenses, are assigned to three activity cost pools based on resource consumption. The data used in the assignments of the first stage are the following:

General expenses:
equipment depreciation	ps	96,000
supervision expense	ps	8,000

Distribution of resource consumption among activity cost groups:

	Activity Cost Pools
	machining	order filling		Other
equipment depreciation	0.30	0.10		0,60
supervision expense	0,60	0.10		0.30

Machining costs are assigned to products using machine-hours (MH) and order fulfillment costs are assigned to products using the number of orders. Costs in the Other Activity cost pool are not assigned to products. The activity data of the two company products are as follows:

Activity:

	MH (Machined)	Orders (Filling Orders)
Product M0	4500	400
Product H2	5,500	600
Total	10,000	1,000

Required

What is the indirect cost assigned to Product H2 under activity-based costing?

Answer rating: 100% (QA)

Total Equipment Depreciation 96000 Total Supervision Expenses 8000 Product M0 E... View the full answer