X Company uses an activity-based costing allocation system. On January 1, 2020, its accountant budgeted the...

Activity	Budgeted cost	Cost driver
Purchasing	$53,600	4,400 purchase orders
Assembly	$134,000	98,700 parts
Packaging	$80,400	14,100 finished units

In May of 2020, 646 units of Product C were finished, requiring $19,600 of direct materials, 6,000 direct labor hours, 1,089 parts, and 43 purchase orders.

How much of the three activity costs was allocated to Product C [round overhead rate(s) to two decimal places]?

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Expert Solution

Here we are calculating Activity cost incurred for product C .For this we have explained what is activity costing and how it is calculated and allocated to the product being manufactured.

Total activity costs being incurred for product C is $5686.98(activity costs ) .

Please refer the attachment for solution

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ekkarill92 answered 1 year ago

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