A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $81,411 and the cost drivers for Product 1 is 400 and 262 for Product 2. The assembling activity pool has estimated costs of $62,196 and the cost drivers for Product 1 is 200 and 300 for Product 2. Direct labor hours for Product 1 is 452and 114 for Product 2. What is the total manufacturing overhead cost to be assigned to Product 1 using a single overhead rate as under tradional cost accounting?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
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Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 8MC: A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the...
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A company makes two products 1 and 2. The finishing activity pool has estimated manufacuring costs of $81,411 and the cost drivers for Product 1 is 400 and 262 for Product 2. The assembling activity pool has estimated costs of $62,196 and the cost drivers for Product 1 is 200 and 300 for Product 2. Direct labor hours for Product 1 is 452and 114 for Product 2. What is the total manufacturing overhead cost to be assigned to Product 1 using a single overhead rate as under tradional cost accounting?

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