Answer:
Zenco Manufacturing
Total overhead cost allocated to Product E05G is closest to:
$263,700
($87.90 * 3,000)
Explanation:
a) Data and Calculations:
Activity Cost Pool Activity Measure Total Cost Total Activity
Machining Machine-hours $ 285,000 15,000 MHs
Machine setups Number of setups $ 180,000 300 setups
Product design Number of products $ 64,000 2 products
Order size Direct labor-hours $ 350,000 10,000 DLHs
Total overhead costs $ 879,000
Plantwide overhead rate = Total overhead divided by total direct hours
= $879,000/10,000
= $87.90
Activity Measure Product E05G Product L64Y
Machine-hours 12,000 3,000
Number of setups 170 130
Number of products 1 1
Direct labor-hours 3,000 7,000