Foundational LO CCAlgo
Myra Inc. manufactures two products units of Product and units of Product The company uses a plantwide overhead rate based on direct labour hours. It is considering implementing an activitybased costing ABC system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products P and Q : The total estimated overhead cost may not agree with the sum of allocated overhead costs to each product.
tableActivity Cost Pool,Activity MeasureMachiningMachinehoursMachine setups,Number of setupstableProduct designGeneral factorytableNumber of productsDirect labour hoursActivity Measure,Product P Product QMachiningNumber of setups,tableNumber of productsDirect labour hourstabletabletable
Required:
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product QRound your intermediate calculations to decimal places.
Total manufacturing overhead cost
