One of Stellar Company's activity cost pools is machine setups, with an estimated overhead of $180,000. Stellar produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers? A) $180,000 B) $72,000 C) $90,000 D) $108,000

One of Stellar Company's activity cost pools is machine setups, with an estimated overhead of $180,000. Stellar produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers? A) $180,000 B) $72,000 C) $90,000 D) $108,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...

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Question

Can you please give answer the general accounting question?

One of Stellar Company's activity cost pools is machine setups, with an
estimated overhead of $180,000. Stellar produces sparklers (400 setups)
and lighters (600 setups). How much of the machine setup cost pool
should be assigned to sparklers?
A) $180,000
B) $72,000
C) $90,000
D) $108,000

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