Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation Supervisory expense $ 47,000 $ 6,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Order Filling Machining Other Equipment depreciation Supervisory expense 0.60 0.10 0.30 0.60 0.20 0.20 In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. TI costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: Orders (Order MHs (Machining) Filling) Product C9 6,900 200 Product Ue 3,100 800 Total 10,000 1,000 What is the overhead cost assigned to Product C9 under activity-based costing?

Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation Supervisory expense $ 47,000 $ 6,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Order Filling Machining Other Equipment depreciation Supervisory expense 0.60 0.10 0.30 0.60 0.20 0.20 In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. TI costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: Orders (Order MHs (Machining) Filling) Product C9 6,900 200 Product Ue 3,100 800 Total 10,000 1,000 What is the overhead cost assigned to Product C9 under activity-based costing?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...

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