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Question - Handal Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Machining, Order Filling, and Other. The costs in those activity cost pools appear below:
Machining
$9,177
Order Filling
$22,344
Other
$6,600
Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:
MHs (Machining)
Orders (Order Filling)
Product O4
3,000
210
Product S1
10,300
1,120
Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.
Sales (total)
$86,100
$92,600
Direct materials (total)
$39,800
$29,000
Direct labor (total)
$34,600
$35,700
Required - What is the overhead cost assigned to Product S1 under activity-based costing?
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