Meester Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow:Overhead costs: Equipment depreciation$96,000Supervisory expense$8,000??Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools MachiningOrder FillingOtherEquipment depreciation0.300.100.60Supervisory expense0.600.100.30Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost
pool are not assigned to products. Activity data for the company's two products follow:Activity: MHs (Machining)Orders (Order Filling)Product M04,500400Product H25,500600Total10,0001,000What is the overhead cost assigned to Product H2 under activity-based costing?
A. $6,240
B. $18,480
C. $24,720
D. $52,000
Answer: C
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