What is the amount of overhead cost to be assigned


A company manufactures two products (X and Y). The overhead costs of $84,000 have been traced into three cost pools that use the following activity drivers:
Number

Product Number of Setups machine hours packing order

  • X 10 500 75
  • Y 10 2,000 175
  • Cost per pool $5,000 $55,000 $20,000

Usisng activity-based costing, what is the amount of overhead cost to be assigned to Product X?

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Accounting Basics: What is the amount of overhead cost to be assigned
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