Solution-How much total overhead cost would be assigned

How much total overhead cost would be assigned

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Reference no: EM133061296

Question - Assume a company manufactures only two products-14,000 units of Product G and 6,000 units of Product H. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to three cost pools. The following additional information is available for the company as a whole and for Products G and H:

Activity Cost Pool	Activity Measure	Estimated Overhead Cost	Expected Activity
Machining	Machine-hours	$300,000	15,000	MH
Machine setups	Number of setups	$150,000	200	Setups
Product design	Number of products	$78,000	2	Products

Activity Measure	Product G	Product H
Machine-hours	9,000	6,000
Number of setups	50	150
Number of products	1	1

Required - Using the ABC system, how much total overhead cost would be assigned from all of the activities to Product H?

a. $261,500

b. $271,500

c. $251,500

d. $301,500

Reference no: EM133061296

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How much total overhead cost would be assigned

Reference no: EM133061296

Reference no: EM133061296

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