Roca, Inc., manufactures and sells two products: Product M6 and Product X7. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated MOH Cost Expected Activity Product M6 Product X7 Total Labor related DLH $152,100 3,000 4,800 7,800 Product orders orders $63,035 400 300 700 Order size Machine hours $505,452 3,700 3,600 7,300 The total overhead to be applied to Product X7 using activity-based costing is closest to:

Question

contestada

Respuesta :

andromache andromache · Answer 1 · 2020-10-07T05:34:59+02:00

Answer:

$369,879

Explanation:

The computation of the total overhead to be applied is shown below:

Product X7

Activity Cost Estimated Expected Activity Expected Overhead

Pool Overhead Total Rate Activity applied

Cost Activity

Labor

-related $152,100 7,800 $19.50 4800 $93,600

Production

orders $63,035 700 $90.05 300 $27,015

Order size $505,452 7300 $69.24 3600 $249,264

Total $720,587 $369,879