Mirkle Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Data for one of the company's products follow: The company produced 4,000 units of product during the period.Direct materials cost $7.30 per unit and direct labor cost $5.45 per unit.How much total cost would be assigned to the 4,000 units of Product P59G using the activity-based costing system?
A)$61,014.40
B)$39,214.40
C)$10,014.40
D)$51,000.00
E)$31,814.40

Question

Mirkle Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products:  Data for one of the company's products follow:  The company produced 4,000 units of product during the period.Direct materials cost $7.30 per unit and direct labor cost $5.45 per unit.How much total cost would be assigned to the 4,000 units of Product P59G using the activity-based costing system?
A)$61,014.40 
B)$39,214.40 
C)$10,014.40 
D)$51,000.00 
E)$31,814.40

Quizplus · Accepted Answer

Total cost assigned to Product P59G = (Unit cost of each activity * Activity rate per unit) * Number of units of activity used by Product P59G
= [(2.20 * 400) + (0.80 * 1,200) + (4.50 * 2,800) + (1.70 * 400)] * 4,000
= $61,014.40

Mirkle Corporation Uses the Following Activity Rates from Its Activity-Based