Question

Activity Cost Pools (and Activity Measures) Estimated Overhead Cost Machine related (machine-hours) $ 336,600 Batch setup (setups) $ 382,260 Order size (direct labor-hours) $ 274,500 Expected Activity Activity Cost Pools Product X Product Y Total Machine related 5,600 7,600 13,200 Batch setup 11,200 2,600 13,800 Order size 4,600 7,600 12,200 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: (Round your intermediate calculations to 2 decimal places.)

Answer 1

Answer:

$545,700

Explanation:

The computation of the total amount of overhead cost allocated for product X is shown below:

Machine related [$336,600 × 5,600 ÷ 13,200] $142,800

batch setups [$336,600 × 11,200 ÷ 13,200]  $285,600

Order Size [$336,600 × 4,600 ÷ 13,200]  $117,300

Total amount of overhead cost allocated          $545,700