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Studler Corporation has an activity-based costing system with three activity cost pools—Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment expense $ 49,550 Indirect labor $ 6,500 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Processing Supervising Other Equipment expense 0.60 0.20 0.20 Indirect labor 0.10 0.50 0.40 Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: MHs (Processing) Batches (Supervising) Product Y4 2,550 170 Product R6 14,450 3,230 Total 17,000 3,400 What is the overhead cost assigned to Product R6 under activity-based costing? (Round intermediate answers to two decimal places.)
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In this essay, we are going to discuss the issues of financial management in a non-profit organisation.
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