Business, 28.02.2021 16:10, breezer20042

Kulka Corporation manufactures two products: Product F82D and Product T05P. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products F82D and T05P. Activity Cost Pool Activity Measure Total Cost Total Activity
Machining Machine-hours $180,000 9,000MHs
Machine setups Number of setups $125,000 250 setups
Product design Number of products $44,000 2 products
Order size Direct labor-hours $260,000 10,000 DLHs

Activity Measure Product F82D Product T05P
Machine-hours 5,000 4,000
Number of setups 160 90
Number of products 1 1
Direct labor-hours 4,000 6,000

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product T05P?

a. $156,000
b. $303,000
c. $147,000
d. $304,500

Answers: 1

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Kulka Corporation manufactures two products: Product F82D and Product T05P. The company uses a plant...