FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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COVID 19 Co currently uses traditional costing procedures, applying $800.000 of overhead to products YB and YA on the basis of direct labor hours. The company is considering a shift to activity-based
costing and the creation of individual cost pools that will use direct labor hours (DLH), production setups (SU), and number of parts components (PC) as cost drivers. Data on the cost pools and respective
driver volumes follow
Product
Pool No.1 (Driver DLH) Pool No.2 (Driven SU)
Pool No 3.(Drivern PO
YB
1,200
45
2.250
YA
2,800
55
750
Pool Cost
$160,000
$280,000
The overhead cost allocated to YA by using activity-based costing procedures would be
Select one
Oa None of the answers is correct.
b. $444.000
C S156.000
d. $240.000.
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Transcribed Image Text:COVID 19 Co currently uses traditional costing procedures, applying $800.000 of overhead to products YB and YA on the basis of direct labor hours. The company is considering a shift to activity-based costing and the creation of individual cost pools that will use direct labor hours (DLH), production setups (SU), and number of parts components (PC) as cost drivers. Data on the cost pools and respective driver volumes follow Product Pool No.1 (Driver DLH) Pool No.2 (Driven SU) Pool No 3.(Drivern PO YB 1,200 45 2.250 YA 2,800 55 750 Pool Cost $160,000 $280,000 The overhead cost allocated to YA by using activity-based costing procedures would be Select one Oa None of the answers is correct. b. $444.000 C S156.000 d. $240.000.
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