amount of overheads allocated to product Apex

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 1PB: Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven...
icon
Related questions
Question
Z Company uses activity-based costing for its product Apex and Ultimo. The total estimated annual overhead cost for set up was RO 440,000 and
the expected activity was 4000 set ups for the period. If product Apex requires 1800 set ups, the amount of overheads allocated to product Apex
for set up cost would be:
O a. RO 198,000
O b. RO 180,000
Oc. RO 298,000
O d. RO 280,000
Which among the following is not an activity?
O a. A customer
O b. Placing purchase order
O c. Machine set up
O d. After sales service
Transcribed Image Text:Z Company uses activity-based costing for its product Apex and Ultimo. The total estimated annual overhead cost for set up was RO 440,000 and the expected activity was 4000 set ups for the period. If product Apex requires 1800 set ups, the amount of overheads allocated to product Apex for set up cost would be: O a. RO 198,000 O b. RO 180,000 Oc. RO 298,000 O d. RO 280,000 Which among the following is not an activity? O a. A customer O b. Placing purchase order O c. Machine set up O d. After sales service
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,