МОН with a hat is the Me Activ
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...
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Question
![ABC Company uses activity-based costing to allocate MOH. The company has 2 products d and e. The annual
production of sales of Product d are 1,000 units and product e is 3000 units. There are three activity cost pool
of MOH with an estimated total cost of $69,000.
What is the MOH cost per unit for product d under activity-based costing?
Expected Activity (Allocation base)
Total
Activity
Cost pool (for MOH)
Activity 1
Activity 2
Activity 3
Estimated
Cost of MOH
Product d
Product e
$9000
500
500
1000
12000
200
200
500
48,000
500
1100
1600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F963efa39-4808-43ff-b46a-57ddc557fc1f%2F88f337dd-1b6b-4b68-a527-801f7108dcbb%2Fjer4dej_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ABC Company uses activity-based costing to allocate MOH. The company has 2 products d and e. The annual
production of sales of Product d are 1,000 units and product e is 3000 units. There are three activity cost pool
of MOH with an estimated total cost of $69,000.
What is the MOH cost per unit for product d under activity-based costing?
Expected Activity (Allocation base)
Total
Activity
Cost pool (for MOH)
Activity 1
Activity 2
Activity 3
Estimated
Cost of MOH
Product d
Product e
$9000
500
500
1000
12000
200
200
500
48,000
500
1100
1600
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