Longview Manufacturing Company manufactures two products (I and II). The overhead costs ($58,000) have been divided into three cost pools that use the following activity drivers: $\begin{array}{lccc}
&&\text { Number of Labor }\
\text { Product } & \text {Number of Orders } & \text { Transactions } &\text { Labor Hours }\
\hline I& 15 & 50 & 500 \
II & 10&150&2,000 \
\text { Cost per pool } & \$ 12,500 & \$ 8,000 & \$ 40,000
\end{array}$ If the number of labor hours is used to assign labor costs from the cost pool, determine the amount of overhead cost to be assigned to Product I.
A)$58,000
B)$ 8,000
C)$ 9,600
D)$32,000

Question

Longview Manufacturing Company manufactures two products (I and II). The overhead costs ($58,000) have been divided into three cost pools that use the following activity drivers: $\begin{array}{lccc} 
&&\text { Number of Labor }\
\text { Product  } & \text {Number of Orders } & \text { Transactions } &\text { Labor Hours }\
\hline I& 15 & 50 & 500 \
II & 10&150&2,000 \
\text { Cost per pool } & \$ 12,500 & \$ 8,000 & \$ 40,000
\end{array}$ If the number of labor hours is used to assign labor costs from the cost pool, determine the amount of overhead cost to be assigned to Product I.
A)$58,000
B)$ 8,000
C)$ 9,600
D)$32,000

Quizplus · Accepted Answer

The Answer of Longview Manufacturing Company manufactures two products (I and II). The overhead costs ($58,000) have been divided into three cost pools that use the following activity drivers: $\begin{array}{lccc} 
&&\text { Number of Labor }\
\text { Product  } & \text {Number of Orders } & \text { Transactions } &\text { Labor Hours }\
\hline I& 15 & 50 & 500 \
II & 10&150&2,000 \
\text { Cost per pool } & \$ 12,500 & \$ 8,000 & \$ 40,000
\end{array}$ If the number of labor hours is used to assign labor costs from the cost pool, determine the amount of overhead cost to be assigned to Product I.
A)$58,000
B)$ 8,000
C)$ 9,600
D)$32,000

Longview Manufacturing Company Manufactures Two Products (I and II) If the Number of Labor Hours Is Used to Assign