Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and...
50.1K
Verified Solution
Question
Accounting
Meester Corporation 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 | $ | 80,300 | |||||
Supervisory expense | $ | 10,100 | |||||
Distribution of Resource Consumption Across Activity Cost Pools:
Activity Cost Pools | |||||
Machining | Order Filling | Other | |||
Equipment depreciation | 0.60 | 0.30 | 0.10 | ||
Supervisory expense | 0.60 | 0.20 | 0.20 | ||
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:
MHs (Machining) | Orders (Order Filling) | |
Product M0 | 1,720 | 790 |
Product H2 | 9,650 | 1,950 |
Total | 11,370 | 2,740 |
How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.