Assuming that actual activity turns out to be the same as expected activity, the total amount of…
Andry Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:
Activity Cost Pools (and Activity Measures)
Estimated Overhead Cost
Machine related (machine-hours)
$177,000
Batch setup (setups)
$453,600
General factory (direct labor-hours)
$227,000
Expected Activity
Activity Cost Pools
Total
Product X
Product Y
Machine related
10,000
7,000
3,000
Batch setup
7,000
5,000
2,000
General factory
10,000
6,000
4,000
Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to:
A) $613,000
B) $454,000
C) $428,800
D) $584,100