Question - Schwering Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Machining, $99,000; Order Filling, $140,400; and Other, $67,800. Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:
|
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MHs (Machining)
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Orders (Order Filling)
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Product D7
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10,890
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2,880
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Product U1
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22,110
|
720
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What is the overhead cost assigned to Product U1 under activity-based costing?
94,410
82,500
28,080
66,330