Direct labor hours used on each product are 50000for a1, Accounting Basics

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Direct labor hours used on each product are 50000for a1

Calvin Co. produces 3 products:A1, B2, and C3. A1 requires 400 purchase orders, B2 requires 600purchase orders, and C3 requires 1,000 purchase orders. Calvin hasidentified an ordering and receiving activity cost pool withallocated overhead of $120,000 for which the cost driver ispurchase orders. Direct labor hours used on each product are 50,000for A1, 40,000 for B2, and 110,000 for C3. How much ordering andreceiving overhead is assigned to each product?

A1 B2C3

a. $40,000 $40,000$40,000

b. $30,000 $24,000$66,000

c. $24,000 $36,000$60,000

d. $27,000 $30,000$63,000

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Accounting Basics: Direct labor hours used on each product are 50000for a1

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Accounting Basics: Direct labor hours used on each product are 50000for a1

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Accounting Basics: Direct labor hours used on each product are 50000for a1

Reference No:- TGS0596625

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