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What is the overhead cost assigned to Product C4 under activity-based costing

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Question

Stroth Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Machining, Order Filling, and Other. The costs in those activity cost pools appear below;Machining;$ 5,400;Order Filling;$ 2,500;Other;$ 13,100;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 appear below;MHs (Machining);Orders;(Order Filling);Product C4;9,800;500;Product L4;200;500;Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.;Product C4;Product L4;Sales (total);$ 46,900;$ 25,300;Direct materials (total);$ 15,100;$ 11,500;Direct labor (total);$ 22,300;$ 10,900;What is the overhead cost assigned to Product C4 under activity-based costing?;$6,542;$5,292;$1,250;$10,500

 

Paper#25245 | Written in 18-Jul-2015

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