Answer:
The amount of cost from Pool A that is allocated to LQ6 is $7,802.
Explanation:
Since Pool A includes all variable overhead and uses direct labor as the allocation base, we can obtain the following from the question:
Direct labor = $82,056
Variable overhead = $146,362
Number of labor hours used by LQ6 = 162
Factory's labor costs per hour = $27
Therefore, we have:
Factory's labor cost of LQ6 = Number of labor hours used by LQ6 * Factory's labor costs per hour = 162 * $27 = $4,374
Variable over allocated to LQ6 from Pool A = (Factory's labor cost of LQ6 / Direct labor) * Variable overhead = ($4,374 / $82,056) * $146,362 = $7,801.83518572682
Rounding to whole number of $ as required, we have:
Variable over allocated to LQ6 from Pool A = $7,802
Therefore, the amount of cost from Pool A that is allocated to LQ6 is $7,802.
