Lysiak Corporation uses an activity-based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs:?Equipment depreciation$47,000Supervisory expense$6,000Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools MachiningOrder FillingOtherEquipment depreciation0.600.100.30Supervisory expense0.600.200.20In the second stage, Machining 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 C96,900200Product U03,100800Total10,0001,000How much overhead cost is allocated to the Machining activity cost pool under activity-based costing in the first stage of allocation?
A. $28,200
B. $31,800
C. $3,600
D. $15,300
Answer: B
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Reith Inc. has provided the following data for the month of November. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Work In ProcessFinished GoodsCost of Goods SoldTotalDirect materials$1,850 $10,440 $58,560 $70,850 Direct labor 3,510 22,620 126,880 153,010 Manufacturing overhead applied 1,560 7,800 42,640 52,000 Total$6,920 $40,860 $228,080 $275,860 Manufacturing overhead for the month was overapplied by $4,000.The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those
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