BraKy Corporation uses activity-based costing to compute product margins in the

Question

BraKy Corporation uses activity-based costing to compute product margins in the first stage the activity based costing system allocates two overhead accounts equipment deprecation and three actvny cost pools Machining. order filling and other based on resource consumption Data to perform these allocations appear Below in the second stage. Machining costs are assigned to products using macnwe-nours |MHs) and Order Filling costs are assigned to products using the numoer of orders The costs m me Other activity cost pool are not assigned to products.

Explanation / Answer

Answer C is correct = $6826

Working below

Sales Total 63800 direct Material Cost 31500 Direct Labor Cost 19300 Distribution Expenses of Macining ( 21050/27350*5750)               4,427 Distribution Expenses of order filling ( 11220/1137*177)          1,747.00               6,826 Machining Order Filling Others Equipment Depriciation 14000 8400 5600 Supervisor Salary 7050 2820 4230 21050 11220 9830

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