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) Orders

Product Y7 1,150 610

Product V2 9,060 2,280

Total

10,210

2,890

What is the overhead cost assigned to Product V2 under activity-based costing? (Round your intermediate calculations to 2 decimal places and your final answer to nearest whole dollar.)

a) $20,976

b) $40,951

c) $70,560

d) $61,927

Question

Dee Dee

Business

18 February, 19:00

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) Orders

Product Y7 1,150 610

Product V2 9,060 2,280

Total

10,210

2,890

What is the overhead cost assigned to Product V2 under activity-based costing? (Round your intermediate calculations to 2 decimal places and your final answer to nearest whole dollar.)

a) $20,976

b) $40,951

c) $70,560

d) $61,927

+1

Answers (1)

Know the Answer?

Juliet Haney · Answer 1

d) $61,927

Explanation:

Base on the scenario been described in the question we can define Activity Based Costing is a way to calculate overhead by identifying activities and then allocating the costs of each activity to the products based on the usage of the activities.

The overhead cost assigned to Product V2 under activity-based costing is d) $61,927