Zang Company Manufactures Two Products (X and Y)

question 61

Multiple Choice

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

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