Skiver, Inc., manufactures and sells two products: Product K5 and Product J2.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below: The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: The total overhead applied to Product K5 under activity-based costing is closest to:
A)$613,970
B)$533,088
C)$349,960
D)$631,848

Question

Skiver, Inc., manufactures and sells two products: Product K5 and Product J2.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs)required to produce that output appear below:   The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:  The total overhead applied to Product K5 under activity-based costing is closest to:
A)$613,970 
B)$533,088 
C)$349,960 
D)$631,848

Quizplus · Accepted Answer

Computation of activity rates: 11ea7998_5e95_8b81_911b_0fb28c318d28_TB2627_00_TB2627_00 Computation of the overhead cost under activity-based costing. 11ea7998_5e95_8b82_911b_d96050dcb272_TB2627_00_TB2627_00