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: 2

Answer

Manufacturing overhead cost is allocated to Product Y=456.000. Manufacturing overhead cost is allocated to Product Z= 228.000.

Work Step by Step

Manufacturing overhead cost = Total direct labour hours * Plantwide overhead rate per DLH Manufacturing overhead cost is allocated to Product Y= 8000 * 57.00=456.000 Manufacturing overhead cost is allocated to Product Z= 4000 * 57.00=228.000
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