Accounting

Wecker Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:

Activities

Activity Rate

  Setting up batches

$85.25  

 per batch

  Processing customer orders

$76.21  

 per customer order

  Assembling products

$11.31  

 per assembly hour

Product V09X  

Product A09X  

  Number of batches

71         

14         

  Number of customer orders

22         

11         

  Number of assembly hours

494         

699         

How much overhead cost would be assigned to Product V09X using the activity-based costing system?

$172.77

$146,481.61

$13,316.51

$6,052.75

The controller of Ferrence Company estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below:

Wall Mirrors

Specialty Windows  

  Total expected units produced

  7,900            

2,800              

  Total expected material moves

790            

990              

  Direct labor-hours per unit

6            

5              

If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total materials handling cost should be allocated to the wall mirrors? (Round your intermediate calculation to four decimal places. Round your final answer to nearest whole dollar.)

$47,400  

$14,642  

$10,317  

$9,482  

Addy Company has two products: A and B. The annual production and sales of Product A is 2,450 units and of Product B is 1,850 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labor-hours per unit and Product B requires 0.6 direct labor-hours per unit. The total estimated overhead for next period is $107,100. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and General Factory--with estimated overhead costs and expected activity as follows:

 Activities

Estimated Overhead cost

Expected Activity

Product A

Product B

Total

  Activity 1

$33,094      

1,750     

1,350     

3,100      

  Activity 2

18,850      

2,450     

950     

3,400      

  General Factory

55,156      

735     

1,110     

1,845      

  Total

$107,100      

$5.54

$29.89

$58.05

$10.68

Accola Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,800 units and of Product B is 1,050 units. There are three activity cost pools, with estimated costs and expected activity as follows:

  Activities

Estimated Overhead Cost

Expected Activity

Product A

Product B

Total

  Activity 1

$46,775

 1,300

1,200

2,500

  Activity 2

$68,277

2,300

1,000

3,300

  Activity 3

$82,502

   720  

700

  1,420  

$63.19

$69.32

$79.82

$46.56

Aujla Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:

Activities (and Activity Measures)

Estimated Overhead Cost

  Machine related (machine-hours)

$292,640

  Batch setup (setups)

$315,900

  General factory (direct labour-hours)

$220,320

Expected Activity

Activities

Product X

Product Y

Total

  Machine related

4,900

6,900

11,800

  Batch setup

9,800

1,900

   11,700   

  General factory

3,900

6,900

  10,800  

Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to:

$315,900

$704,120

$388,220

$465,680