Capizzi Corporation has an activity-based costing system with three activity cos
ID: 2563009 • Letter: C
Question
Capizzi Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow:
Activity Cost Pools
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:
10,790
2,910
How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?
A. $57,450
B. $26,050
C. $1,000
D. $25,050
Capizzi Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow:
Explanation / Answer
How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?
so answer is b) $26050
machining order filing other total Equipment depreciation 33400 25050 25050 83500 supervisory expenses 2000 1000 2000 5000 Total 35400 26050 27050 88500