Deuter Int’l Business manufactures two products, Product L11 and Product L12. The company is considering adopting an activity-based costing system with the following activity pools, activity measures, and expected activity: Expected ActivityActivity Cost PoolsEstimated Overhead CostProduct L11Product 12TotalMachine setups required$200,0006001,4002,000Purchase orders issued38,382500100600Machine-hours required92,6506,80010,20017,000 $331,032 The amount overhead costs assigned to Product L11 would be closest to: Question 15 options: 1) $331,032 2) $129,045 3) $165,516 4) $130,758

In ABC costing, the overhead cost is allocated on the basis of cost driver

Answered: Deuter Int’l Business manufactures two…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...

See similar textbooks

Related questions

Concept explainers

Question

Deuter Int’l Business manufactures two products, Product L11 and Product L12. The company is considering adopting an activity-based costing system with the following activity pools, activity measures, and expected activity:

Expected Activity

Activity Cost Pools	Estimated Overhead Cost	Product L11	Product 12	Total
Machine setups required	$200,000	600	1,400	2,000
Purchase orders issued	38,382	500	100	600
Machine-hours required	92,650	6,800	10,200	17,000
	$331,032

The amount overhead costs assigned to Product L11 would be closest to:

Question 15 options:

$331,032

$129,045

$165,516

$130,758

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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