Reference no: EM132843578

Problem 1: Peters, Inc. produces 3 products: P1, Q2, and R3. P1 requires 400 purchase orders, Q2 requires 600 purchase orders, and R3 requires 1000 purchase orders. Peters has identified an ordering and receiving activity cost pool with allocated overhead of $300000 for which the cost driver is purchase orders. Direct labor hours used on each product are 50000 for P1, 40000 for Q2, and 110000 for R3. How much ordering and receiving overhead is assigned to each product?

        P1               Q2                       R3
a) $100000     $100000       $100000
b) $75000      $60000         $165000
c) $67500      $75000         $157500
d) $60000     $90000           $150000