Business, 03.04.2020 21:43 767sebmont
Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:
Activities (and Activity Measures) Estimated Overhead Cost
Machine related (machine-hours) $317,520
Batch setup (setups) $353,460
General factory (direct labour-hours) $250,560
Expected Activity
Activities Product X Product Y Total
Machine related 5,300 7,300 12,600
Batch setup 10,600 2,300 12,900
General factory 4,300 7,300 11,600
Required:
Assuming that actual activity turns out to be the same as the expected activity, the total amount of overhead cost allocated to Product X would be closest to:
a. $353,460
b. $773,880
c. $420,420
d. $516,880
Answers: 3
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