Yang Manufacturing Company manufactures two products (A and B). The overhead cos
ID: 2575448 • Letter: Y
Question
Yang Manufacturing Company manufactures two products (A and B). The overhead costs (£60,000) have been divided into three cost pools that use the following activity cost drivers/location bases: Number of labour (A-15, B-10); Product Number of Orders (A-50, B-150); Transactions labour Hours (A-500, B-2,000). The amount of overhead cost to be assigned to Product B using number of labour as the allocation base isYang Manufacturing Company manufactures two products (A and B). The overhead costs (£60,000) have been divided into three cost pools that use the following activity cost drivers/location bases: Number of labour (A-15, B-10); Product Number of Orders (A-50, B-150); Transactions labour Hours (A-500, B-2,000). The amount of overhead cost to be assigned to Product B using number of labour as the allocation base is
Yang Manufacturing Company manufactures two products (A and B). The overhead costs (£60,000) have been divided into three cost pools that use the following activity cost drivers/location bases: Number of labour (A-15, B-10); Product Number of Orders (A-50, B-150); Transactions labour Hours (A-500, B-2,000). The amount of overhead cost to be assigned to Product B using number of labour as the allocation base is
Explanation / Answer
Amount of overhead allocated to Product B= Total overhead/Number of labour= 60000/25*10=24000
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