Kulka Corporation manufactures two products: Product F82D and Product T05P. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products F82D and T05P.Activity Cost PoolActivity MeasureTotal CostTotal ActivityMachiningMachine-hours$180,0009,000 MHsMachine setupsNumber of setups$125,000250 set-upsProduct designNumber of products$125,0002 productsOrder sizeDirect labor-hours$260,00010,000 DLHsActivity MeasureProduct F82DProduct T05PMachine-hours5,0004,000Number of setups16090Number of products11Direct labor-hours4,0006,000Using the ABC system, how much total
manufacturing overhead cost would be assigned to Product T05P?
A. $304,500
B. $156,000
C. $303,000
D. $147,000
Answer: C
You might also like to view...
When a customer returns goods, the company decreases the Sales account
Indicate whether the statement is true or false
In the ______ pattern, threads of thought refer back to the speaker’s central purpose.
a. web b. deferred-thesis c. linear d. narrative
Businesses using web feeds are not dependent on e-mail for relaying information and do not have to rely on the fact that people will visit their sites
Indicate whether the statement is true or false
Satisfaction of an accord discharges ________.
A. only the accord B. only the original contract C. both the accord and the original contract D. neither the accord nor the original contract if it is without a novation