Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information: Units Setups Inspections Assembly (dlh) Hooks 4,000 3 1 Nooks 8,000 2 Activity Total Activity-Base Usage Budgeted Activity Cost Setups 20,000 $60,000 Inspections 24,000 120,000 Assembly (dlh) 28,000 420,000 The total factory overhead to be allocated to Nooks is Oa. S600,000 Ob. S400,000 Oc. S300,000 Od. 5488,000

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...
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Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information:
Units
Setups
Inspections
Assembly (dlh)
Hooks
4,000
3
1
Nooks
8,000
2
Activity
Total Activity-Base Usage
Budgeted Activity Cost
Setups
20,000
$60,000
Inspections
24,000
120,000
Assembly (dlh)
28,000
420,000
The total factory overhead to be allocated to Nooks is
Oa. S600,000
Ob. S400,000
Oc. S300,000
Od. $488,000
Transcribed Image Text:Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information: Units Setups Inspections Assembly (dlh) Hooks 4,000 3 1 Nooks 8,000 2 Activity Total Activity-Base Usage Budgeted Activity Cost Setups 20,000 $60,000 Inspections 24,000 120,000 Assembly (dlh) 28,000 420,000 The total factory overhead to be allocated to Nooks is Oa. S600,000 Ob. S400,000 Oc. S300,000 Od. $488,000
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