# 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