Answer:
Soehl, Inc.
The total overhead applied to Product T4 under activity-based costing is closest to:________
$224,995
Explanation:
a) Data and Calculations:
Expected activity
Activity Cost pools Activity Estimated Product T4 Product F9 Total
Measures Overhead
Labour related DLHs $326,650 4500 4900 9400
Product training tests 68,572 600 800 1400
Order size MHs 79,690 32,00 33,00 65,00
Total overhead costs = $474,912
Activity rates:
Total Product T4 Product T9 Total
Labour related $34.75 $156,375 $170,275 $324,650
Product training costs $48.98 29,388 39,184 68,572
Ordering costs $12.26 39,232 40,458 79,690
Total overhead costs $224,995 $249,917 $474,912
