Overhead costs have already been allocated to the company’s three activity cost pools as follows: Machining, $38,500; Order Filling, $23,000;…
Overhead costs have already been allocated to the company’s three activity cost pools as follows: Machining, $38,500; Order Filling, $23,000; and Other, $15,500. Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders.