Zang Company manufactures two products (X and Y). The overhead costs (£84,000) have been divided into three cost pools that use the following activity drivers/allocation bases: What is the amount of overhead cost to be assigned to Product X using machine hours as the allocation base?

A) £12,000
B) £60,000
C) £48,000
D) £16,800

Question

Zang Company manufactures two products (X and Y) . The overhead costs (£84,000) have been divided into three cost pools that use the following activity drivers/allocation bases: What is the amount of overhead cost to be assigned to Product X using machine hours as the allocation base?

A) £12,000 
B) £60,000 
C) £48,000 
D) £16,800

Quizplus · Accepted Answer

The Answer of Zang Company manufactures two products (X and Y). The overhead costs (£84,000) have been divided into three cost pools that use the following activity drivers/allocation bases: What is the amount of overhead cost to be assigned to Product X using machine hours as the allocation base?

A) £12,000 
B) £60,000 
C) £48,000 
D) £16,800

Zang Company Manufactures Two Products (X and Y)