1
Expected activity
Activity Cost pools Activity Measures Estimated overhead cost Product T4 Product F9 Total
Labour related DLHs $326,650 4500 4900 9400
Product training tests 68,572 600 800 1400
Order size MHs 79,690 32,00 33,00 65,00

The total overhead applied to Product T4 under activity-based costing is closest to:________

1 Answer

2

Answer:

Soehl, Inc.

The total overhead applied to Product T4 under activity-based costing is closest to:________

$224,995

Explanation:

a) Data and Calculations:

Expected activity

Activity Cost pools  Activity    Estimated  Product T4   Product F9   Total

                              Measures Overhead

Labour related        DLHs      $326,650       4500            4900      9400

Product training      tests            68,572         600              800       1400

Order size              MHs             79,690      32,00           33,00     65,00

Total overhead costs =           $474,912

Activity rates:

                                               Total       Product T4   Product T9   Total

Labour related                      $34.75     $156,375     $170,275    $324,650

Product training costs          $48.98        29,388          39,184         68,572

Ordering costs                      $12.26        39,232         40,458        79,690

Total overhead costs                           $224,995    $249,917     $474,912

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Danial Hane III
15.5k 3 10 26
answered 11 months ago