Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:
Activity Cost Pools (and Activity Measures
Estimated Overhead Cost
Machine related (machine-hours)
R81 600
Batch setup (setups).
R387 000
General factory (direct labour-hours).
R274 800
Expected Activity
Activity Cost Pools
Total
Product X
Product Y
Machine related
8,000
3,000
5,000
Batch setup
10,000
2,000
General factory
12,000
7,000
Assuming that actual activity turns out to be the same as expected activity, calculate the total amount of overhead cost allocated to Product X.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here