Question: Meester Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two

Meester Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption Data used in the first stage allocations follow: Overhead costs: Equipment expense Supervisory expense $ 79,600 $ 5,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment expense 0.50 0.30 0.20 Supervisory expense 0.50 0.30 0.20 Machining costs are assigned to products using machine-hours (MHs) and Order Fulling costs are assigned to products using the number of orders. The costs in the other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: Activity: Orders (Order MHS (Machining) Filling) Product MO 1,550 1,070 Product 12 9,700 1,630 Total 11,250 2,700 What is the overhead cost assigned to Product H2 under activity-based costing? (Round your intermediate calculations to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
