Question

Quantum Corporetion has provided the following deta from its activity-based costing system: Activity Cost Pool Assembly Processing orders Overhead Cost Total Activity 56, 500 machine hours $ 39,711 1,55e orders $ 103,133 8 02-4654Inspection 1,510 inspection hours The company makes 290 units of product J71B a year, requiring a total of 930 machine-hours, 31 orders, and 17 inspection-hours per year. The product's direct materials cost is $2700 per unit and its direct labor cost is $18 per unit. According to the activity-based costing system, the total overhead cost for producing the 290 units of the J71B product is: Multiple Choice $12 934.00 $27,51112

Please Answer 23 and 24

* 24 and 26

Answer 1

Answer:

1)

Activity cost per activity=Expected overhead cost/Expected Acitvity

Hence activity cost per:

Machine-hours=(10,76,890/56500)=$19.06

Processing orders=(39,711/1550)=$25.62

Inspection=(103,133/1510)=$68.3

Hence total overhead for product=($19.06*930)+($25.62*31)+($68.3*17)

=$19,681.12

Add:total direct material cost=(27*290)=$7830

Add:total direct labor cost=(18*290)=$5220

Total=$32,731.12

2)

Cost allocated:	Amount($)
Rent and utilities	17,435	=31100/6600*3700
Indirect labor	13,250	=21200/80000*50000
Depreciation-Equipment	10,764	=19200/6600*3700
Total	41,449