Tandem Company Manufactures Two Products (D and F) Using Functional-Based Costing, What Is the Amount of Overhead Cost

question 31

Multiple Choice

Tandem Company manufactures two products (D and F) . The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers: $\begin{array}{cccc}\text { Product } & \text { Number of Setups} & \text { Machine Hours} & \text { Packing Orders }\\\hline\mathrm{D} & 10 & 500 & 75 \\\text { F } & 10 & 2,000 & 175 \\\text { Cost perpool } & \$ 11,000 & \$ 60,000 & \$ 18,750\end{array}$ Using functional-based costing, what is the amount of overhead cost to be assigned to Product D using machine hours as the allocation base?

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

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Definitions:

Biological Community

A group of interacting organisms of different species living in a common location.

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The potential niche an organism can occupy in an ecosystem, without taking into account competition and other biotic factors.

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The actual conditions and resources in which an organism or population lives and reproduces, considering biotic and abiotic factors.

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Aquatic environments characterized by high flow rates, often supporting distinct flora and fauna adapted to these conditions.