Trivium Inc. is a retail business that produces energy drinks and assorted flavored waters. They are in the process of evaluating their costing systems and are working towards an Activity-Based Costing (ABC) implementation. One of the roadblocks up to this point has been a lack of consensus on what key activities make the most sense to track. Their accountant has compiled the following data about their Manufacturing Overhead (MOH) costs:
The production department used the following amounts in a recent production run: 2,300 square feet, 2,909 maintenance hours, and 1,230 machine setups.
(If required, round calculations to two decimal places.)
a. What is the total amount of MOH cost allocated to facility-level activities?
b. What is the total amount of MOH cost allocated to product/process-level activities?
c. What is the total amount of MOH cost allocated to batch-level activities?

Question

Trivium Inc. is a retail business that produces energy drinks and assorted flavored waters. They are in the process of evaluating their costing systems and are working towards an Activity-Based Costing (ABC) implementation. One of the roadblocks up to this point has been a lack of consensus on what key activities make the most sense to track. Their accountant has compiled the following data about their Manufacturing Overhead (MOH) costs:
  The production department used the following amounts in a recent production run: 2,300 square feet, 2,909 maintenance hours, and 1,230 machine setups.
(If required, round calculations to two decimal places.)
a. What is the total amount of MOH cost allocated to facility-level activities?
b. What is the total amount of MOH cost allocated to product/process-level activities?
c. What is the total amount of MOH cost allocated to batch-level activities?

Quizplus · Accepted Answer

The Answer of Trivium Inc. is a retail business that produces energy drinks and assorted flavored waters. They are in the process of evaluating their costing systems and are working towards an Activity-Based Costing (ABC) implementation. One of the roadblocks up to this point has been a lack of consensus on what key activities make the most sense to track. Their accountant has compiled the following data about their Manufacturing Overhead (MOH) costs:
  The production department used the following amounts in a recent production run: 2,300 square feet, 2,909 maintenance hours, and 1,230 machine setups.
(If required, round calculations to two decimal places.)
a. What is the total amount of MOH cost allocated to facility-level activities?
b. What is the total amount of MOH cost allocated to product/process-level activities?
c. What is the total amount of MOH cost allocated to batch-level activities?