Angara Corporation uses activity-based costing to determine product costs for ex
ID: 2512658 • Letter: A
Question
Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Activity Cost Pool (and Activity Measure) Total Cost Machine related (machine-hours) $ 116,200 Batch setup (setups) $ 522,200 General factory (direct labor-hours) $ 106,400 Total Activity Activity Cost Pools Product X Product Y Total Machine related 1,200 5,800 7,000 Batch setup 2,700 4,300 7,000 General factory 6,200 1,800 8,000 The total amount of overhead cost allocated to Product X would be closest to:
Explanation / Answer
Calculate total amount of overhead cost allocated to product x :
Product X Machine related (116200/7000*1200) 19920 Batch setup (522200/7000*2700) 201420 General factory (106400/8000*6200) 82460 Total overhead cost allocated 303800