Question

Eagle Eye Company produces two types of lenses–L7 and L9. Single Indirect-Cost Pool System ABC System...

Eagle Eye Company produces two types of lenses–L7 and L9.

Single Indirect-Cost Pool System

ABC System

Total direct costs

$77,500

$58,000

Total indirect costs

$37,500

(a)

Total costs assigned to L7

$62,000

$49,500

Total costs assigned to L9

(b)

$65,500

27) What is the total indirect costs (a) under ABC system?

A) $53,000

B) $57,000

C) $57,500

D) $40,000

28) What is the total costs assigned to L9 (b) under single indirect-cost pool system?

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Homework Answers

Answer #2

27. (B) $57,000

Explanation:

Total Direct Cost + Total Indirect Cost = Total cost assigned to L7 + Total cost assigned to L9

$58,000 + Total Indirect Cost = $49,500 + $65,500

Total Indirect Cost = $115,000 - $58,000 i.e. $57,000

28. $53,000 (options are not provided in question. So I am providing you with answer only)

Explanation:

Total Direct Cost + Total Indirect Cost = Total cost assigned to L7 + Total cost assigned to L9

$77,500 + $37,500 = $62,000 + Total cost assigned to L9

Total cost assigned to L9 = $115,000 - $62,000 i.e. $53,000

answered by: anonymous
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