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Alekssandra [29.7K]
3 years ago
9

The Princeville Company placed five (5) orders for Product 12B from Brookston Corporation. Brookston has the following informati

on about Product 12B:
Activity Cost Pools Activity Rate Product 12B
Activity Machine Setups $12.00per Machine hour 40MHs
Customer Orders $10.00per Order 5 Orders
What is the overhead cost assigned to Princeville for its five (5) orders of Product 12B?
Business
1 answer:
wel3 years ago
7 0

Answer:

Cost assigned to Princeville = Machine setup cost + Customer order cost.

Cost assigned to Princeville = $12.00*40MHs + $10.00*5MHs

Cost assigned to Princeville = $530

So, the overhead cost assigned to Princeville for its five (5) orders of Product 12B is $530

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