Question: Using the new (and shiny) activity based costing system, Gary Knitting Associates is now ready to calculate the total overhead for product Y, using the

Using the new (and shiny) activity based costing system, Gary Knitting Associates is now ready to calculate the total overhead for product Y, using the appropriate cost driver for each pool. How much of the total overhead cost ($84,000) will be assigned to product Y using activity based costing? # of Setups 10 10 $9,000.00 Packing Orders 75 175 $15,000.00 Product Machine Hours 500 2000 $60,000.00 Cost per Pool Select one a. $19,800.00 b. $63,000.00 O c. $43,400.00 O d. $84,000.00 e. $16,800.00
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
