Author Question: Answer the following questions using the information below: Eagle Eye Company produces two types of ... (Read 239 times)

stevenposner · **on:** Mar 6, 2021

Question 1

________ is considered while choosing a cost allocation base for activity costs in ABC costing.
◦ Marketing strategy and material price level
◦ Availability of reliable data and measures
◦ Product price level
◦ Market share of a product

Question 2

Answer the following questions using the information below:
Eagle Eye Company produces two types of lenses-L7 and L9.

	Single Indirect-Cost Pool System	ABC System
Total direct costs	$78,500	$53,000
Total indirect costs	$32,500	(a)
Total costs assigned to L7	$68,000	$58,500
Total costs assigned to L9	(b)	$55,500

What is the total indirect costs (a) under ABC system?
◦ $43,000
◦ $58,000
◦ $55,500
◦ $46,000

cloud · **Reply #1 on:** Mar 6, 2021

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