Evaluate product costs for external financial reports

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Reference no: EM13646269

Andris 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).................	$46,400
	Batch setup (setups).....................................	$434,000
	General factory (direct labor-hours).............	$226,500

	Expected Activity
Activity Cost Pools	Total	Product X	Product Y
Machine related...........	4,000	3,000	1,000
Batch setup..................	7,000	3,000	4,000
General factory............	15,000	7,000	8,000

1. The activity rate for the batch setup activity cost pool is closest to:

A) $62.00

B) $101.00

C) $144.70

D) $108.50

2. Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to:

A) $353,450

B) $303,000

C) $326,500

D) $434,000

Reference no: EM13646269

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