Asked by Haimanti Bhattacharyya on Jun 23, 2024
Verified
The total overhead applied to Product P4 under activity-based costing is closest to:
A) $736,290
B) $367,281
C) $491,491
D) $758,601
Activity-Based Costing
A costing method that assigns overhead and indirect costs to specific activities related to production.
- Gauge the overhead expenses attributed to certain products utilizing the strategy of activity-based costing.
Verified Answer
GB
gizeal bahatiJun 29, 2024
Final Answer :
C
Explanation :
Computation of activity rates: Computation of the overhead cost under activity-based costing. Reference: CH04-Ref5
Bobzien, Inc., manufactures and sells two products: Product B7 and Product Z5.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $15.10 per DLH.The direct materials cost per unit is $136.20 for Product B7 and $204.40 for Product Z5.
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Bobzien, Inc., manufactures and sells two products: Product B7 and Product Z5.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The direct labor rate is $15.10 per DLH.The direct materials cost per unit is $136.20 for Product B7 and $204.40 for Product Z5.
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Learning Objectives
- Gauge the overhead expenses attributed to certain products utilizing the strategy of activity-based costing.
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