Zumbrunnen Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated...

60.1K

Verified Solution

Question

Accounting

Zumbrunnen Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Processing, Supervising, and Other. The costs in those activity cost pools appear below:

Processing $14,278
Supervising $75,192
Other $29,000

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 appear below:

MHs (Processing) Batches (Supervising)
Product M2 6,200 1,120
Product H2 18,000 440
Total

24,200

1,560

Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.

Product M2 Product H2
Sales (total) $259,900 $236,100
Direct materials (total) $124,700 $93,400
Direct labor (total) $66,500 $87,000

What is the overhead cost assigned to Product H2 under activity-based costing?

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