Determine the total overhead to be applied to product

Reference no: EM132217893

Question - Kalmbach manufactures and sells two products: Product 1 and Product 2. The company is adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Activity Cost Pools	Activity Measures	Est. Overhead Cost	Expected Activity
Activity Cost Pools	Activity Measures	Est. Overhead Cost	Product 1	Product 2	Total
Labor-related	Labor hours	$296,390	2,700	8,000	10,700
Production orders	Orders	$55,587	300	400	700
Order size	Machine hours	$579,866	5,000	4,700	9,700
		$931,843

Complete the following in order to determine the total overhead to be applied to Product 2 under activity-based costing.

Activity Cost Pools	Estimated Overhead Cost	Total Expected Activity	Activity Rate
Labor-related
Production orders
Order size

Activity Cost Pools	Activity Rate	Product 2
Activity Cost Pools	Activity Rate	Expected Activity	Amount
Labor-related
Production orders
Order size
Total overhead costs assigned

Reference no: EM132217893

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