Bartow Corporation Uses an Activity Based Costing System to Assign

question 127

Multiple Choice

Bartow Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment expense and indirect labor--are allocated to the three activity cost pools--Processing, Supervising, and Other--based on resource consumption. Data to perform these allocations appear below: Distribution of Resource Consumption Across Activity Cost Pools:
In the second stage, Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:
Activity:
What is the overhead cost assigned to Product H3 under activity-based costing?

• A) $6,930
• B) $13,496
• C) $18,500
• D) $6,566