Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. deemer corporation has an activity-based costing s

Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other....

90.2K

Verified Solution

Question

Accounting

Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Overhead costs: Equipment expense $ 98,000 Indirect labor $ 7,900

Distribution of Resource Consumption Across Activity Cost Pools:

Activity Cost Pools Processing Supervising Other Equipment expense 0.20 0.60 0.20 Indirect labor 0.20 0.50 0.30

Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:

Activity:

MHs (Processing) Batches (Supervising) Product F6 18,700 710 Product X0 2,070 1,340 Total 20,770 2,050

What is the overhead cost assigned to Product X0 under activity-based costing? (Round your intermediate calculations to 2 decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1 The maximum number of atomic orbitals associated with a principal quantum number 5 is...

Physics
Q

What type of defensive tools can we employ to protect our networks?

Programming
Q

Determine the final temperature and pressure of a mixture of CO2 (MW=44) and nitrogen if 3...

Mechanical Engineering
Q

Provided the options below match the correct choice with its corresponding option 0 Legislative a...

Biology
Q

Use the above Cash account to determine (a) cash flows used...

Accounting
Q

give two example each of non current assets with a finite life amd non current...

Accounting
Q

information in Exercise 16-4 and compute the departments equivalent units of production for direct materials...

Accounting
Q

9. If 100,800 pounds of raw materials are needed to meet production in August, what...

Accounting
Q

Investor owns 20% of Investee and applies the equity method. In 2020, Investee sells merchandise...

Accounting
Q

Problem 1) Hiva's son now is 16 years old (Early 16). Hiva wants to invest...

Finance
Q

14. The corporate charter of Alpaca Co. authorized the issuance of 10 million, $1 par...

Accounting
Q

Fab Five Industries offers a Define Benefit Pension Plan to its employees. The plan provides...

Finance