Reck Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Machining, $11,700; Order Filling, $17,800; and Other, $13,500. 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 appear below: What is the overhead cost assigned to Product V8 under activity-based costing? Garrison 16e Rechecks 2018-07-24
A) $14,240
B) $3,627
C) $17,867
D) $21,500

Question

Reck Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Machining, $11,700; Order Filling, $17,800; and Other, $13,500. 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 appear below:  What is the overhead cost assigned to Product V8 under activity-based costing? Garrison 16e Rechecks 2018-07-24
A) $14,240 
B) $3,627 
C) $17,867 
D) $21,500

Quizplus · Accepted Answer

The Answer of Reck Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Machining, $11,700; Order Filling, $17,800; and Other, $13,500. 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 appear below:  What is the overhead cost assigned to Product V8 under activity-based costing? Garrison 16e Rechecks 2018-07-24
A) $14,240 
B) $3,627 
C) $17,867 
D) $21,500

Reck Corporation Uses Activity-Based Costing to Assign Overhead Costs to Products