Business, 23.04.2020 18:05 beetle1234

Torello Corporation manufactures two products: Product H95V and Product V93N. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products H95V and V93N.

Activity Cost Pool Activity Measure Total Cost Total Activity
Machining Machine-hours $242,000 11,000 MHs
Machine setups Number of setups $140,000 350 etups
Product design Number of products $70,000 2 products
General factory Direct labor-hours $270,000 10,000 DLHs

Activity Measure Product H95V Product V93N
Machine-hours 6,000 5,000
Number of setups 250 100
Number of products 1 1
Direct labor-hours 6,000 4,000

Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product H95V?

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Torello Corporation manufactures two products: Product H95V and Product V93N. The company uses a pla...

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