None Meester 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 resourceconsumption. Data used in the first stage allocations follow:Overhead costs:Equipment depreciationSupervisory expense$ 96,000$ 8,000Distribution of Resource Consumption Across Activity Cost Pools:Equipment depreciationSupervisory expenseMachining0.300.60Activity Cost PoolsOrder FillingOther0.600.300.100.10Machining 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 followActivity:Orders (OrderMHs (Machining)Filling)Product MaProduct H24,5005,50010,0004006001,000TotalHow much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?Multiple ChoiceOOOO$60,000$800$10,400$9,600

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Description: None Meester 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

Activity-based costing is a costing method that is used to allocate the overhead cost to the…

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Meester 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 Overhead costs: Equipment depreciation Supervisory expense $ 96,000 $8,000 Distribution of Resource Consumption Across Activity Cost Pools: Equipment depreciation Supervisory expense Activity Cost Pools Machining 0.30 0.60 Order Filling 0.10 0.10 Other 8.60 0.30 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 MHs (Machining) Filling) Product Ma 4,500 Product H2 Total 5,500 10,000 400 600 1,000 How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

Meester 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 Overhead costs: Equipment depreciation Supervisory expense $ 96,000 $8,000 Distribution of Resource Consumption Across Activity Cost Pools: Equipment depreciation Supervisory expense Activity Cost Pools Machining 0.30 0.60 Order Filling 0.10 0.10 Other 8.60 0.30 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 MHs (Machining) Filling) Product Ma 4,500 Product H2 Total 5,500 10,000 400 600 1,000 How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...

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