Zumbrunnen Corporation uses activity-based costing to compute product margins. O

Question

Zumbrunnen Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Processing, Supervising, and Other. The costs in those activity cost pools appear below:

Zumbrunnen Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Processing, Supervising, and Other. The costs in those activity cost pools appear below Processing Supervising Other Processing costs are assigned to products using machlne-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below MHS Batches Processing) (Supervising) Product M2 Product H2 Total 5,500 16,600 910 370 22,100 1,280 Flnally, sales and direct cost data are comblned with Processing and Supervising costs to determine product margins. Sales (total) Direct materlals (total) Direct labor (total) Product M2 $224,900 $110,700 Product H2 $201.100 $79,400 $80,000 What is the overhead cost assigned to Product H2 under activity-based costing? O $17,575 O $41,000 O $26.207 O $8,632

Explanation / Answer

Processing 8632 =11492/22100*16600 Supervising 17575 =60800/1280*370 Overhead cost assigned to Product H2 26207 Option 3 is correct

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