# 24. Aveda, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2requires 600 purchase orders, and R3 requires 1,000 purchase orders. Aveda hasidentified 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 eachproduct are 50,000 for P1, 40,000 for Q2, and 110,000 for R3. How much ordering andreceiving overhead is assigned to each product using activity-based costing?P1A)Q2\$54,000 \$60,000R3\$126,000B)\$80,000 \$80,000\$80,00010C)\$48,000 \$72,000 \$120,000D) \$60,000 \$48,000 \$132,000030 2188000 01c225. Urban Products Co. incurs \$1,050,000 of overhead costs each year in its three maindepartments, machining (\$600,000), inspections (\$300,000) and packing (\$150,000).The machining department works 4,000 hours per year, there are 600 inspections peryear, and the packing department packs 1,000 orders per year. Information about Urban'stwo products isoffollows:1Aesion00Product Y3,000500Product X1,000100Machining hoursInspectionsOrders packedDirect labor hoursocosts.Sh6503501,8001,700poIf traditional costing based on direct labor hours is used, how much overhead is assignedto Product X this year?A) \$252,501B) \$525,000C) \$363,462D) \$510,000QEACDJoanoo i eanssauhtco(GesbivangYo ihonsdbaSh3.BESA3000b u elgfoo1Svnovhb

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Calculate the amount of ordering and receiving overhead is assigned to P1.

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