Horgen Corporation manufactures two products: Product M68B and Product H27T. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products M68B and H27T. Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine-hours $299,000 13,000 MHs Machine setups Number of setups $240,000 400 setups Product design

1 answer
Question:

Horgen Corporation manufactures two products: Product M68B and Product H27T. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products M68B and H27T.
Activity Cost Pool Activity Measure Total Cost Total Activity
Machining Machine-hours $299,000 13,000 MHs
Machine setups Number of setups $240,000 400 setups
Product design Number of products $80,000 2 products
Order size Direct labor-hours $290,000 10,000 DLHs
Activity Measure Product Product
Machine-hours M68B H27T
Number of setups 6,000 7,000
Number of products 250 150
Direct labor-hours 4,000 6,000
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product H27T?
a. $291,000
b. $174,000
c. S465,000
d. $454,500

Answers

Answer: $465,000Explanation:The activity-based costing (ABC) is used to know the total cost of activities that is vital to make a product. In ABC system, for every activity which goes into production, a cost will be assigned.Based on the figures in the question, the following can be deduced:Machining:= 299,000/13,000 × 7,000= 23 × 7,000= $161,000Machine set up:= 240,000/400 × 150= 600 × 150= $90000Product design:= 80,000/2= $40,000Order size:= 290,000/10,000 × 6,000= 29 × 6,000= $174,000Total = $161,000 + $90,000 + $40,000 + $174,000= $465,000The total manufacturing overhead cost that would be assigned to Product H27T is $465,000.

Similar Solved Questions

2 answers

Which word correctly completes the sentence? All around the attic we found many __________ nests.   A. mices   B. mices'   C. mice's

Which word correctly completes the sentence? All around the attic we found many __________ nests.   A. mices   B. mices' ...
2 answers

CARTOON CHARACTER HELP LOL

CARTOON CHARACTER HELP LOL...
2 answers

OOOO What are some of the factors that can cause a person to have a single-gene disease or disorder?

OOOO What are some of the factors that can cause a person to have a single-gene disease or disorder?...
1 answer

SIGN THIS PETITION!! #PHONES IN SCHOOL

SIGN THIS PETITION!! #PHONES IN SCHOOL...
1 answer

A firefighter is trying to break through a door. Is he more likely to break through if he runs at the door very slowly or if he runs at the door very fast? Explain your answer.

A firefighter is trying to break through a door. Is he more likely to break through if he runs at the door very slowly or if he runs at the door very fast? Explain your answer....
1 answer

What was one main cause of the Age of Exploration? A) The great awakening B) The dark ages C) The crusades D) The roaring twenties

what was one main cause of the Age of Exploration? A) The great awakening B) The dark ages C) The crusades D) The roaring twenties...
2 answers

Submit your reflection on Fritz koenig’s sphere

Submit your reflection on Fritz koenig’s sphere...
1 answer

Help please I don’t really understand

Help please I don’t really understand...
2 answers

What are the solutions of the equation f (x) = g(x)?

What are the solutions of the equation f (x) = g(x)?...
2 answers

What Greek general conquered the land between Greece and India

What Greek general conquered the land between Greece and India...
2 answers

Evaluate the expression 1/2x - 2/3y when x = 4 and y = -3

Evaluate the expression 1/2x - 2/3y when x = 4 and y = -3...
2 answers

What are shamans? A: Indian medicine men. B: Indian chiefs. C: indian tradersD: indian warriors ​

what are shamans? A: Indian medicine men. B: Indian chiefs. C: indian tradersD: indian warriors ​...
2 answers

Which graph represents the solution set of the inequality x+2≥ 6?

Which graph represents the solution set of the inequality x+2≥ 6?...
2 answers

What responsibility does the mayor or city manager have in the budgeting process? vetoing line-items in the budget approving or rejecting the budget putting the budget into effect writing and presenting the budget

What responsibility does the mayor or city manager have in the budgeting process? vetoing line-items in the budget approving or rejecting the budget putting the budget into effect writing and presenting the budget...
1 answer

Please help asap (show your work, or explain how you got it, pleaseee :()

Please help asap (show your work, or explain how you got it, pleaseee :()...
2 answers

What is 5 x 3/4 and please give me your simplest answer

What is 5 x 3/4 and please give me your simplest answer...
2 answers

How did Jamestown succeed economically? a. through trade with the Indians b. with glassblowing c. by mining gold and silver d. by planting and selling tobacco

How did Jamestown succeed economically? a. through trade with the Indians b. with glassblowing c. by mining gold and silver d. by planting and selling tobacco...
2 answers

The target maximum rate for debt ratio is _____. 30% 25% 50% 80%

The target maximum rate for debt ratio is _____. 30% 25% 50% 80%...
1 answer

The idea that government should play as small a role as possible in a countries economic affairs. is known as

the idea that government should play as small a role as possible in a countries economic affairs. is known as...
1 answer

Suppose that scores on a test are normally distributed with a mean of 80 and a standard deviation of 8. Which of the following questions below are of type B? a. Find the 80th percentile. b. Find the cutoff for the A grade if the top 10% get an A. c. Find the percentage scoring more than 90. d. Find the score that separates the bottom 30% from the top 70%. e. Find the probability that a randomly selected student will score more than 80.

Suppose that scores on a test are normally distributed with a mean of 80 and a standard deviation of 8. Which of the following questions below are of type B? a. Find the 80th percentile. b. Find the cutoff for the A grade if the top 10% get an A. c. Find the percentage scoring more than 90. d. Find ...

-- 0.010491--