Myers Corp. uses two activity cost pools Material handling totaled $60,000; mach
ID: 2501086 • Letter: M
Question
Myers Corp. uses two activity cost pools Material handling totaled $60,000; machine maintenance totaled $50,000. There were 1,200 material moves and 125,000 machine hours. The activity rate for the material handling pool would be Myers Corp. uses two activity cost pools. Material handling totaled $60,000; machine maintenance totaled $50,000. There were 1,200 material moves and 125,000 machine hours. The activity rate for the machine maintenance pool would be Squibb Corp. uses two activity cost pools. Material handling totaled $60,000; machine maintenance totaled $50,000. There were 1,200 material moves and 125,000 machine hours. How- much overhead would be allocated to Product A if it had 40 material moves and 5,000 machine hours? Squibb Crop. Use two activity cost pools. Material handling totaled $60,000; machine maintenance totaled $50,000. There were 1,200 material moves and 125,000 machine hours. Product A had 40 material moves and 6,000 machine hours: Product B had 70 material moves and 4,000 machine hours. How much overheated would be assigned to Product A?Explanation / Answer
Activity rate for material handling pool = $60000/1200 = $50
Activity rate for machine maintenance pool = $50000/125000 machine hours = $0.4
64. The correct answer is option D I.e. $50
65. The correct answer is option C I.e. $0.40
66. Allocation of overhead to product A = (40*$50)+(5000*$0.4) = $4000. Therefore, correct answer is option A.
67. Allocation of overhead to product A = (40*$50)+(6000*$0.4) = $4400. Therefore, correct answer is option B.
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