Danno Company manufactures two products, product F and product G. The company us
ID: 2485425 • Letter: D
Question
Danno Company manufactures two products, product F and product G. The company uses activity based costing to compute unit product cost. Data relating to the company's three activity centers are given below:
Activity center
Estimated overhead costs
Total expected activity
Expected activity, Product F
Expected activity, Product G
Machine set up
$2,000
200
50
150
Purchase orders
$4,000
2,000
500
1,500
General factory
$8,000
8,000
2,000
6,000
Total
$14,000
Using the activity based costing approach, total overhead applied for product F is:
Activity center
Estimated overhead costs
Total expected activity
Expected activity, Product F
Expected activity, Product G
Machine set up
$2,000
200
50
150
Purchase orders
$4,000
2,000
500
1,500
General factory
$8,000
8,000
2,000
6,000
Total
$14,000
Explanation / Answer
Activity Based Costing Overheads for product F Machine Set up cOst 2000*50/200 500 Purchase Order 4000*500/2000 1000 General Factory 8000*2000/8000 2000 Total 3500 total overhead applied for product F is: $3,500
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.