Trainor 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, $29, 200;Supervising, $13, 000;and Other, $26, 800.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 G0 under activity-based costing?
A)$31, 000
B)$9, 100
C)$21, 900
D)$34, 500

Question

Trainor 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, $29, 200;Supervising, $13, 000;and Other, $26, 800.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 G0 under activity-based costing?
A)$31, 000 
B)$9, 100 
C)$21, 900 
D)$34, 500

Quizplus · Accepted Answer

Processing: $29, 200 ÷ 10, 000 MHs = $2.92 per MH
Supervising: $13, 000 ÷ 1, 000 batches = $13.00 per batch
Overhead cost for Product G0:
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Trainor Corporation Uses Activity-Based Costing to Assign Overhead Costs to Products.Overhead