Activity Cost Pool Total Cost Total Activity Activity Rate Machine setups $ 20,000 200 setups $ 100 per setup Special processing $ 150,000 10,000 MHs $ 15 per machine-hour General factory $ 200,000 20,000 direct labour-hours $ 10 per direct labour-hour Total overhead costs $ 370,000 What is the total overhead cost assigned to Product A, if Product A used 100 setups, no special processing and 10,000 direct labor-hours? $10,000 $1,000 $110,000 $100,000

Question

Virginia Henry

Business

9 May, 17:25

Activity Cost Pool Total Cost Total Activity Activity Rate Machine setups $ 20,000 200 setups $ 100 per setup Special processing $ 150,000 10,000 MHs $ 15 per machine-hour General factory $ 200,000 20,000 direct labour-hours $ 10 per direct labour-hour Total overhead costs $ 370,000 What is the total overhead cost assigned to Product A, if Product A used 100 setups, no special processing and 10,000 direct labor-hours? $10,000 $1,000 $110,000 $100,000

+2

Answers (1)

Know the Answer?

Jacey Meyer · Answer 1

total overhead cost = $110,000

so correct option is c. $110,000

Explanation:

given data

used = 100 setups

direct labor-hours = 1000

to find out

What is the total overhead cost assigned to Product A

solution

we get total overhead cost that is express as

total overhead cost = [ $100 per machine setup * 100 setups ] + [ $15 per machine-hours * 0 special processing ] + [ 10 per direct labor-hour * 10,000 direct labor-hours ]

so

total overhead cost = $10,000 + $0 + $100,000

total overhead cost = $110,000

so correct option is c. $110,000