Business, 28.02.2020 01:24 tonyiacamper1
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:
Activities (and Activity Measures) Estimated Overhead Cost
Machine related (machine-hours) $362,600
Batch setup (setups) $421,500
General factory (direct labour-hours) $308,100
Expected Activity
Activities Product X Product Y Total
Machine related 6,000 8,000 14,000
Batch setup 12,000 3,000 15,000
General factory 5,000 8,000 13,000
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:
a. $421,500
b. $897,500
c. $476,000
d. $611,100
Answers: 1
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Angara Corporation uses activity-based costing to determine product costs for external financial rep...
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