FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Multiple Choice
$23,122
$1,180
$26,500
$21,942
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Transcribed Image Text:Multiple Choice $23,122 $1,180 $26,500 $21,942
Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and
supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations
appear below:
Overhead costs:
Equipment depreciation
Supervisory expense
$ 47,000
$ 6,000
Distribution of Resource Consumption Across Activity Cost Pools:
Activity Cost Pools
Machining
Order Filling
Other
Equipment depreciation
Supervisory expense
0.60
0.10
0.30
0.60
0.20
0. 20
In the second stage, 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:
Orders (Order
Filling)
MHs (Machining)
6,900
Product c9
200
Product Ue
3,100
800
Total
10,000
1,000
What is the overhead cost assigned to Product C9 under activity-based costing?
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Transcribed Image Text:Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation Supervisory expense $ 47,000 $ 6,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation Supervisory expense 0.60 0.10 0.30 0.60 0.20 0. 20 In the second stage, 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: Orders (Order Filling) MHs (Machining) 6,900 Product c9 200 Product Ue 3,100 800 Total 10,000 1,000 What is the overhead cost assigned to Product C9 under activity-based costing?
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