2.

Howell Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation (total) Indirect labor (total) $ 27,800 $ 7,210 Distribution of Resource Consumption Across Activity Cost Pools Machining 0.40 0.30 Equipment depreciation Indirect labor Setting Up Other 0.40 0.30 0.40 0.20 Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Product S4 Product Co Total MHS 13,800 5,200 19,000 Batches 300 1,900 2,200 Additional data concerning the company's products appears below: Sales (total) Direct materials (total) Direct labor (total) Product S4 $ 80,800 $22,200 $43,100 Product Co $ 64,600 $ 22,100 $ 29,100 Required: a. Assign overhead costs to activity cost pools using activity-based costing. b. Calculate activity rates for each activity cost pool using activity-based costing. c. Determine the amount of overhead cost that would be assigned to each product using activity-based costing. d. Determine the product margins for each product using activity-based costing. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Assign overhead costs to activity cost pools using activity-based costing. Activity Cost Pools Machining Setting Up Other Total Equipment depreciation Indirect labor Total 0 $ 0 $ 0 $ 0 $ $ Required A Required B Required C Required D Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.) Activity Cost Pools Machining Setting up Activity Rate per MH per batch Required A Required B Required C Required D Determine the amount of overhead cost that would be assigned to each product using activity-based costing. (Round intermediate calculations to 2 decimal places.) Amount of Overhead Cost Product S4 Product CO Required A Required B Required C Required D Determine the product margins for each product using activity-based costing. (Round intermediate calculations to 2 decimal places.) Product Margin Product S4 Product CO Handal Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Machining, Order Filling, and Other. The costs in those activity cost pools appear below: Machining Order Filling Other $ 6,944 $18,032 $ 5,900 Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: MHS (Machining) 2,300 8,900 Orders (Order Filling) 140 980 Product 04 Product si Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales (total) Direct materials (total) Direct labor (total) Product Product 04 si $ 72,100 $78,600 $32,800 $ 22,000 $31,100 $32,200 What is the overhead cost assigned to Product S1 under activity-based costing? (Round the Intermediate calculation to two decimal places and your final answer to nearest whole dollar.) $13,900 $5,518 $15,778 $21,296