BDG Company manufactures two products (X and Y). The overhead costs (£100,000) have been divided into three cost pools that use the following activity drivers: Product Number of Setups X 10 Y 10 2,000 175 Cost per pool £15,000 £60,000 £25,000 What is the amount of overhead cost to be assigned to Product Y using Parking Orders as the activity driver in an activity-based costing system? O A. £7,500 OB. £100 OC. £17,500 O D. £25,000 Machine Hours 500 Packing Orders 75

Principles of Accounting Volume 2
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Chapter5: Process Costing
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BDG Company manufactures two products (X and Y). The overhead costs (£100,000) have been divided into three cost
pools that use the following activity drivers:
Product
Number of Setups
10
O A. £7,500
O B. £100
O.C. £17,500
OD. £25,000
Machine Hours
10
500
X
Y
2,000
Cost per pool
£15,000
£60,000
What is the amount of overhead cost to be assigned to Product Y using Parking Orders as the activity driver in an
activity-based costing system?
Packing Orders
75 -
175
£25,000
Transcribed Image Text:BDG Company manufactures two products (X and Y). The overhead costs (£100,000) have been divided into three cost pools that use the following activity drivers: Product Number of Setups 10 O A. £7,500 O B. £100 O.C. £17,500 OD. £25,000 Machine Hours 10 500 X Y 2,000 Cost per pool £15,000 £60,000 What is the amount of overhead cost to be assigned to Product Y using Parking Orders as the activity driver in an activity-based costing system? Packing Orders 75 - 175 £25,000
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ISBN:
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