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CoursHeroTranscribedText: A company has an activity-based costing system with three activity cost pools-Machining, Order Filling,...

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Accounting

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CoursHeroTranscribedText: A company has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment depreciation $ 96,000 Supervisory expense $ 8,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling Other Equipment depreciation 0. 30 0. 10 0. 60 Supervisory expense 0. 60 0. 10 0. 30 Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: Orders (Order MHS (Machining) Filling) Product MO 4, 500 400 Product H2 5,500 600 Total 10,000 1,600 What is the overhead cost assigned to Product H2 under activity-based costing?

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