Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow:
Overhead costs:
Equipment expense $ 93,000
Indirect labor $ 5,100
Distribution of Resource Consumption Across Activity Cost Pools:
Activity Cost Pools
Processing Supervising Other
Equipment expense 0.50 0.30 0.20
Indirect labor 0.50 0.30 0.20
Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:
Activity:
MHs (Processing) Batches (Supervising)
Product F6 10,500 1,320
Product X0 1,360 1,320
Total 11,860 2,640
What is the overhead cost assigned to Product X0 under activity-based costing? (Round your intermediate calculations to 2 decimal places.)
a.$14,718.00
b.$30,326.00
c.$5,630.40
d.$20,348.00
Answers: 3
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Deemer Corporation has an activity-based costing system with three activity cost pools--Processing,...
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