Manufacturing Overhead Allocation Using Activity-Based Costing The following information is given for Greenbaum Manufacturing Company

Required:
1. Determine the ABC allocation rate for each activity (i.e., each manufacturing overhead cost pool).
2. Determine the manufacturing overhead cost for each product.
3. If Products A, B, C, and D sell for $130, $125, $156, and $166, respectively, determine the gross margin for Greenbaum’s four products. Assume all units are sold.

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Units produced Direct materials cost Direct labor cost Product A Product B Product C Product D 3,000 3,450 $135,000 $169,050 2,875 $149,500 2,400 $103,200 $75,000 $124,200 $117,875 $93,600