Can some one help me with the question below.. please show the working Umanzor C
ID: 2370811 • Letter: C
Question
Can some one help me with the question below..
please show the working
Umanzor Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, $52,500; Supervising, $28,600; and Other, $24,400. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: MHs (Processing) Batches (supervising) Product S5 18,500 1,400 Product F5 1,100 510 Total 19,600 1,910 What is the overhead cost assigned to Product S5 under activity-based costing?
(Round your intermediate calculations to 2 decimal places.
A$55,070.00
B $20,958.00
C $70,538.00
D $49,580.00
Thank you
Explanation / Answer
Overhead costs:
Equipment depreciation $83,000
Supervisory expense $6,700
Distribution of Resource Consumption Across Activity Cost Pools:
Activity Cost Pools
------------------------- Machining Order Filling Other
Equipment depreciation 0.50 0.30 0.20
Supervisory expense 0.50 0.20 0.30
Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:
Activity:
MHs (Machining) Batches (Order Filling)
Product Y7 1,960 1,430
Product V2 9,030 2,160
Total 10,990 3,590