6. Angara Corporation uses activity-based costing to determine product costs for

Question

6. Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system Estimated Overhead Cost $262.440 $270.300 Activities and Activity Measures) Machine related (machine-hours) Batch setup (setups) General foctory (direct labour-hours) Expected Actv Activities Machine related Batch setup General factory Product X 4400 8,800 3,400 Product Y 6.400 1,400 6,400 Total 10,800 0.200 9,800 Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to: O $617.820 O $404 380 $347520 O $270.300

Explanation / Answer

Answer is $404380

Activity Amt (A) Activity Qty (B) Per Basis (C = A/B) Product X Activity (D) Overhead Assigned (C x D) Machine Related 262440 10800                            24.30                     4,400.00                    106,920.00 Batch Setup 270300 10200                            26.50                     8,800.00                    233,200.00 General Factory 185220 9800                            18.90                     3,400.00                      64,260.00 717960                    404,380.00

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