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

Question

pool are not assigned to products. Activity data for the company's two products follow:Activity: MHs (Machining)Orders (Order Filling)Product C96,900200Product U03,100800Total10,0001,000What is the overhead cost assigned to Product C9 under activity-based costing?

A. $1,180
B. $21,942
C. $23,122
D. $26,500

Answer 1

Answer: C