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a. Compute allocation rates of overhead for each of these activities: (8 point) Setup __________________________________ Processing orders_________________________ Machining ______________________________ Packaging products_______________________ b. Allocate the overhead

a.

Compute allocation rates of overhead for each of these activities: (8 point)

Setup __________________________________

Processing orders_________________________

Machining ______________________________

Packaging products_______________________

b.

Allocate the overhead costs to Product X and Z using Activity-Based Costing. (6 points)

Product X _______________________________________

Product Z _______________________________________

c.

Compute the plant-wide overhead rate using machine hours as the cost driver under the traditional costing system. (2 points)

_______________________________________

d.

Allocate the overhead costs to Products Y and Z using the traditional costing system overhead rate calculated in part (c). (6 points)

Product Y ________________________________

Product Z_________________________________

manufactures three different products (X, Y and Z). The estimated overhead costs are divided into four cost pools that use the following activity drivers: # of

# of

Machine

# of

Product

Setups

Orders

hours

Orders

X

20

35

1,000

75

Y

5

70

1,500

125

Z

10

15

500

50

Activity

Setup

Processing orders

Machining

Packaging

Overhead cost

Rp17,500

Rp8,400

Rp135,000

Rp40,000

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