Overhead coatB Equipment depreciation $51,000 Supervisory expense 5 3.000 Dstrib
ID: 2577818 • Letter: O
Question
Overhead coatB Equipment depreciation $51,000 Supervisory expense 5 3.000 Dstribution of Resource Consumptien Across Activity Cost Poals Activity Cost Pool Mechining Order rilning Other Equipment dapreciation Supervisory expense 0.20 0.30 0.50 Mochining costs are ess gned to products using machine-nours Mtte end rder r ling costs ere 85 ne to products using the nur er o o den e costs in the her 8 ity cost po ere not ss ned to pro ucts ctM y dete or e compeny's two products o ow. Actwity Orders Order Machining rillingI 9,100 900 900 2,n0o Produet. F7 Tot.al Finaly, tha coats af Machining and Order Filingr comnined with tha falilowsingsalas and direct coat data to datermina pronuct margins Product 3 Product Direct materials (total Direct 245,200 90.700 01,400 $38,600 37,700 42,400 labor L0t.a 1 } Howw much ovehand coat &ailocated; to the Onder Filling acthvity coct pod undar achvity-sed costing? Muipic Choicc $5100 $900 $6.003Explanation / Answer
Answer:
Overhead cost allocated to order filling activity cost pool under ABC costing :
= Equipment depreication * Activity cost pool under order filling
=$51,000*0.10
=$5,100
HEnce, First option $5,100 is correct.
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