Question

Horizon Corporation has provided information regarding its overhead to be allocated between the two products it produces: CLX1 and XLA2. What is Horizon's total expected activity for the setting-up equipment activity?

Answer 1

To solve the total expected activity for setting-up equipment activity of horizon's we will simply add the expected activity and setting up equipment of CLX1 and also the expected activity and setting up equipment of AXL2. For example, CLX1 has 9,000 expected activity and setting up equipment and AXL2 has 21,000 expected activity and setting up equipment. By adding CLX1 and AXL2 we will get the total which is 30,000.