Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 7 - Activity-Based Costing: A Tool to Aid Decision Making - The Foundational 15 - Required - Page 318: 10

Answer

$277,000

Work Step by Step

Total overhead cost assigned to Product Y= Machining (at 20 per machine hour) + Machine Setups (at 500 per setup) + Product Design (at 42,000 per product) + General Factory (at 25 per direct labour-hour) = 60,000 + 75,000 + 42,000 + 100,000 = $277,000
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