Question: Studler Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead

Studler Corporation has an activity-based costing system with three activity cost pools-Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment expense Indirect labor $ 69,475 $ 4,250 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Processing Supervising 0.60 0.20 0.10 0.50 Equipment expense Indirect labor Other 0.20 0.40 Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: Product Y4 MHS (Processing) 1,950 11,050 13,000 Batches (Supervising) 130 2,470 2,600 Product R6 Total How much overhead cost is allocated to the Supervising activity cost pool under activity-based costing? $2,125 $13,520 $16,020 $15,520
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