4. XYZ company provides the following ABC costing system: (3 marks) Activities a

Question

4. XYZ company provides the following ABC costing system: (3 marks) Activities and Activity Measures.... Supporting direct labor (DLHs) Setting up machines (setups) Parts administration (part types)... Total Estimated Overhead Cost $1,160,000 288,000 Expected P85es Total C43S DLHs.... Setups... 920 2,400 1.480 880 840 2,720 Required: a. How much of the supporting direct labor will be assigned to Product P85G? b. How much of the setting up machine will be assigned to Product C43S? c. How much of the total costs will be assigned to Product P85G?

Explanation / Answer

Part A

Supporting direct labor assigned to product P85G = supporting direct labor cost * DLH of product P85G / total direct labor hours =1160000*28000/40000=812000

Part 2

Setting up machine assigned to product C43S = setting up machine cost * set ups of product C43S / total set ups = 288000*920/2400 = 110400

Part C

Total cost assigned to product P85G = each cost * cost pool assigned to product P85G / total cost pool

=(1160000*28000/40000)+(288000*1480/2400)+(816000*1880/2720) = 1553600

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.