Meester Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cast pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment expense Supervisory expense Distribution of Resource Consumption Across Activity Cost Pools: Equipment expense Supervisory expense $80, 400 $ 4, 100 Product MO Product H2 Total Activity Cost Pools Machining Order Filling 0.60 0.60 MHS (Machining) 1,300 9,540 10,840 Machining costs are assigned to products using machine-hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: 0.20 0.10 Orders (Order Filling) 790 1,480 2,270 Other 0.20 0.30 What is the overhead cost assigned to Product H2 under activity-based costing? (Round your intermediate calculations to 2 decimal places.)

Meester Corporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cast pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment expense Supervisory expense Distribution of Resource Consumption Across Activity Cost Pools: Equipment expense Supervisory expense $80, 400 $ 4, 100 Product MO Product H2 Total Activity Cost Pools Machining Order Filling 0.60 0.60 MHS (Machining) 1,300 9,540 10,840 Machining costs are assigned to products using machine-hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: 0.20 0.10 Orders (Order Filling) 790 1,480 2,270 Other 0.20 0.30 What is the overhead cost assigned to Product H2 under activity-based costing? (Round your intermediate calculations to 2 decimal places.)

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Description: MeesterCorporation has an activity-based costing system with three activity cost pools-Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciationand supervisory expense, are alloca

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 10MC: What is the proper order of tasks In an ABC system? identify the cost drivers, assign the costs to...

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