23 Jul WHAT IS THE OVERHEAD COST ASSIGNED TO PRODUCT V2 UNDER ACTIVITY-BASED COSTING?
Capizzi Corporation has an activity-based costing system with three activity cost pools-Machinin Show more Capizzi Corporation has an activity-based costing system with three activity cost pools-Machining Order Filling and Other. In the first stage allocations costs in the two overhead accounts equipment depreciation and supervisory expense are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment depreciation $81200 Supervisory expense $11200 Distribution of Resource Consumption Across Activity Cost Pools: Distribution of Resource Consumption Across Activity Cost Pools: Distribution of Resource Consumption Across Activity Cost Pools: Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Activity Cost Pools Activity Cost Pools Machining Order Filling Other Equipment depreciation 0.50 0.30 0.20 Supervisory expense 0.50 0.20 0.30 Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the companys two products follow: Activity: MHs (Machining) Orders Product Y7 1150 610 Product V2 9060 2280 Total 10210 2890 What is the overhead cost assigned to Product V2 under activity-based costing? (Round your intermediate calculations to 2 decimal places and your final answer to nearest whole dollar.) $20976 $40951 $70560 $61927 Show less
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