Hagy Corporation has an activitybased costing system with three activity cost poolsProcessing, Setting Up and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Data concerning the company's costs and activitybased costing system appear below:
Factory utilities total $
Indirect labor total $
Distribution of Resource Consumption Across Activity Cost Pools
Processing Setting Up Other
Factory utilities
Indirect labor
Required:
Assign overhead costs to activity cost pools using activitybased costing.Hagy Corporation has an activitybased costing system with three activity cost poolsProcessing, Setting Up and Other. The
company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the
activity cost pools' consumption of resources. Data concerning the company's costs and activitybased costing system appear below:
Distribution of Resource Consumption Across Activity Cost Pools
Required:
Assign overhead costs to activity cost pools using activitybased costing.