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I need help working out the attached problem. B...




I need help working out the attached problem. Brisky Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense-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 $70,000 Supervisory expense $10,700 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.50 0.20 0.30 Supervisory expense 0.50 0.10 0.40 In 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: MHs (Machining) Orders (Order Filling) Product I3 5,400 101 Product U8 18,300 960 Total 23,700 1,061 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales and Direct Cost Data: Product I3 Product U8 Sales (total) $64,700 $63,700 Direct materials (total) $34,700 $15,400 Direct labor (total) $17,400 $28,200 What is the overhead cost assigned to Product I3 under activity-based costing? (Round your intermediate calculations to 2 decimal places.) $9,180.00 $1,434.00 $40,350.00 $10,614.00


Paper#4404 | Written in 18-Jul-2015

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