Comprehensive Final Exam: Part 1 (Problems) Saved Help Save & Exit Submit Moorma

Question

Comprehensive Final Exam: Part 1 (Problems) Saved Help Save & Exit Submit Moorman Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and Other. The company's overhead costs consist of equipment depreciation and indirect labor and are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation totals $62,000 and indirect labor totals $2,000. Data concerning the distribution of resource consumption across activity cost pools appear below: Processing Setting Up Equipment depreciation Indirect labor 0.50 0.30 0.20 0.20 Other 0.30 0.50 Required Assign overhead costs to activity cost pools using activity-based costing. Activity Cost Pools Processing Setting Up Other Total Equipment depreciation Indirect labor Total

Explanation / Answer

Activity cost pool :

Processing Setting up Other Total Equipment depreciation 31000 12400 18600 62000 Indirect labour 600 400 1000 2000 Total 31600 12800 19600 64000

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