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24. Aveda, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requires 1,000 purchase orders. Aveda has identified an ordering and receiving activity cost pool with allocated overhead of $240,000 for which the cost driver is purchase orders. Direct labor hours used on each product are 50,000 for P1, 40,000 for Q2, and 110,000 for R3. How much ordering and receiving overhead is assigned to each product using activity-based costing? P1 A) Q2 $54,000 $60,000 R3 $126,000 B) $80,000 $80,000 $80,000 10 C) $48,000 $72,000 $120,000 D) $60,000 $48,000 $132,000 030 2188 000 01c2 25. Urban Products Co. incurs $1,050,000 of overhead costs each year in its three main departments, machining ($600,000), inspections ($300,000) and packing ($150,000). The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing department packs 1,000 orders per year. Information about Urban's two products is of follows: 1A esion 00 Product Y 3,000 500 Product X 1,000 100 Machining hours Inspections Orders packed Direct labor hours o costs. Sh 650 350 1,800 1,700 po If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year? A) $252,501 B) $525,000 C) $363,462 D) $510,000 QEA CD Joanoo i eanssauhtco (G esbivang Yo ihonsd baSh3 .BESA 3000 b u elg foo 1Svn ovhb

24. Aveda, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requires 1,000 purchase orders. Aveda has identified an ordering and receiving activity cost pool with allocated overhead of $240,000 for which the cost driver is purchase orders. Direct labor hours used on each product are 50,000 for P1, 40,000 for Q2, and 110,000 for R3. How much ordering and receiving overhead is assigned to each product using activity-based costing? P1 A) Q2 $54,000 $60,000 R3 $126,000 B) $80,000 $80,000 $80,000 10 C) $48,000 $72,000 $120,000 D) $60,000 $48,000 $132,000 030 2188 000 01c2 25. Urban Products Co. incurs $1,050,000 of overhead costs each year in its three main departments, machining ($600,000), inspections ($300,000) and packing ($150,000). The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing department packs 1,000 orders per year. Information about Urban's two products is of follows: 1A esion 00 Product Y 3,000 500 Product X 1,000 100 Machining hours Inspections Orders packed Direct labor hours o costs. Sh 650 350 1,800 1,700 po If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year? A) $252,501 B) $525,000 C) $363,462 D) $510,000 QEA CD Joanoo i eanssauhtco (G esbivang Yo ihonsd baSh3 .BESA 3000 b u elg foo 1Svn ovhb

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 72P: Moleno Company produces a single product and uses a standard cost system. The normal production...
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24. Aveda, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requires 1,000 purchase orders. Aveda has identified an ordering and receiving activity cost pool with allocated overhead of $240,000 for which the cost driver is purchase orders. Direct labor hours used on each product are 50,000 for P1, 40,000 for Q2, and 110,000 for R3. How much ordering and receiving overhead is assigned to each product using activity-based costing? P1 A) Q2 $54,000 $60,000 R3 $126,000 B) $80,000 $80,000 $80,000 10 C) $48,000 $72,000 $120,000 D) $60,000 $48,000 $132,000 030 2188 000 01c2 25. Urban Products Co. incurs $1,050,000 of overhead costs each year in its three main departments, machining ($600,000), inspections ($300,000) and packing ($150,000). The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing department packs 1,000 orders per year. Information about Urban's two products is of follows: 1A esion 00 Product Y 3,000 500 Product X 1,000 100 Machining hours Inspections Orders packed Direct labor hours o costs. Sh 650 350 1,800 1,700 po If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year? A) $252,501 B) $525,000 C) $363,462 D) $510,000 QEA CD Joanoo i eanssauhtco (G esbivang Yo ihonsd baSh3 .BESA 3000 b u elg foo 1Svn ovhb
Transcribed Image Text:24. Aveda, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requires 1,000 purchase orders. Aveda has identified an ordering and receiving activity cost pool with allocated overhead of $240,000 for which the cost driver is purchase orders. Direct labor hours used on each product are 50,000 for P1, 40,000 for Q2, and 110,000 for R3. How much ordering and receiving overhead is assigned to each product using activity-based costing? P1 A) Q2 $54,000 $60,000 R3 $126,000 B) $80,000 $80,000 $80,000 10 C) $48,000 $72,000 $120,000 D) $60,000 $48,000 $132,000 030 2188 000 01c2 25. Urban Products Co. incurs $1,050,000 of overhead costs each year in its three main departments, machining ($600,000), inspections ($300,000) and packing ($150,000). The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing department packs 1,000 orders per year. Information about Urban's two products is of follows: 1A esion 00 Product Y 3,000 500 Product X 1,000 100 Machining hours Inspections Orders packed Direct labor hours o costs. Sh 650 350 1,800 1,700 po If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year? A) $252,501 B) $525,000 C) $363,462 D) $510,000 QEA CD Joanoo i eanssauhtco (G esbivang Yo ihonsd baSh3 .BESA 3000 b u elg foo 1Svn ovhb
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