Peters, Inc. produces 3 products: P1, Q2. and R3. P1requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requires 1000 purchase orders. Peters has identified an ordering and receiving activity cost pool with allocated overhead of $135000 for which the cost driver is purchase orders. Direct labor hours used on each product are 50000 for P1, 40000 for Q2, and 110000 for R3. How much ordering and receiving overhead is assigned to each product? P1 Q2 R3 $45000 $45000 $45000 $30375 $33750 $70875 O $27000 $40500 $67500 $33750 $27000 $74250

Peters, Inc. produces 3 products: P1, Q2. and R3. P1requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requires 1000 purchase orders. Peters has identified an ordering and receiving activity cost pool with allocated overhead of $135000 for which the cost driver is purchase orders. Direct labor hours used on each product are 50000 for P1, 40000 for Q2, and 110000 for R3. How much ordering and receiving overhead is assigned to each product? P1 Q2 R3 $45000 $45000 $45000 $30375 $33750 $70875 O $27000 $40500 $67500 $33750 $27000 $74250

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...

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