Question: Mcnamee Corporation's activity-based costing system has three activity cost pools--Fabricating, Setting Up, and Other Costs in the Fabricating cost pool are assigned to products based
Mcnamee Corporation's activity-based costing system has three activity cost pools--Fabricating, Setting Up, and Other Costs in the Fabricating cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. The activity rate for Fabricating is $0.31 per MH; the activity rate for Setting Up is $3.47 per batch. The following table shows the machine. hours and number of batches associated with each of the company's two products: Product 00 Product 01 MS Batches 1,950370 16,350 1,630 18,300 2,000 Total Required: Determine the amount of overhead cost that would be assigned to each product using activity-based costing. (Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amount.) Amount of Overhead Cost Product 00 Product 01
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
