Award: 1000 points Problems? Adjust credit for all...

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10. Award: 10.00 points Problems? Adjust credit for all students. Required information Knowledge Check 01 Activity Cost Pool Total Cost Total Activity Activity Rate Machine setups $ 20,000 200 setups $100 per setup Special processing $150,000 10,000 MHs $ 15 per machine-hour General factory $200,000 20,000 direct labour-hours $ 10 per direct labour-hour Total overhead costs $370,000 What is the total overhead cost assigned to Product A, if Product A used 100 setups, no special processing and 10,000 direct labor- hours? $10,000 $1,000 $110,000 $100,000 Explanation: Knowledge Check 01 The total overhead cost assigned to Product A is $110,000. This is calculated as $10,000 machine setups ($100 per machine setup × 100 setups) + $0 special processing ($15 per machine-hours × 0 special processing) + $100,000 general factory ($10 per direct labor- hour × 10,000 direct labor-hours).
Multiple Choice Difficulty: 3 Hard Learning Objective: 07-04 Assign costs to a cost object using a second-stage allocation. References
11. Award: 10.00 points Problems? Adjust credit for all students. Required information Knowledge Check 01

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