has an activ allocations, costs in the two overhead accounts, equipment deprecia

Question

has an activ allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource Data used in the first stage allocations follow 157,680 $ 10,410 nt de of R 0.30 0.30 t d 0.10 0.60 0.50 0.20 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 for the company's two products follow Orders Filing) 630 7560 13.440 Product S4 2100 O $4.96 per order $8004 per order $0.50 per order

Explanation / Answer

Answer: $8.50 per order

Activity rate for order filling costs = $17850 / 2100 = $8.50 per order

Order filling Equipment depreciation ($157680 x 0.10) 15768 Supervisory expense ($10140 x 0.20) 2082 Total $ 17850

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