Sibble 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: Processing, $12,400; Supervising, $4,400; and Other, $5,200. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. 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 H3 under activity-based costing?
A)$10,974
B)$11,000
C)$3,300
D)$14,274

Question

Sibble 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: Processing, $12,400; Supervising, $4,400; and Other, $5,200. Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. 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 H3 under activity-based costing?
A)$10,974 
B)$11,000 
C)$3,300 
D)$14,274

Quizplus · Accepted Answer

Processing: $12,400 F1F1F1S1F1F1F10 20,000 MHs = $0.62 per MH
Supervising: $4,400 F1F1F1S1F1F1F10 2,000 batches = $2.20 per batch
Overhead cost for Product H3:
 11eaa48f_7b93_e5ab_9e4a_ef21eead5170_TB2485_00

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