Activity Machine setup Machining.. Polishing... Quality control Facility-level costs Total manufacturing overhead (MOH) Total estimated MOH Total estimated amount of costs related to activity allocation base activity $ 96,000 2,400 setups $ 725,000 5,000 machine hours 55,000 5,000 polishing cloths $ 262,500 3,500 tests run $ 157,500 45,000 DL hours $ 1,296,000 4 machine setups required 3 machine hours 4 polishing cloths 3 quality control tests run 1. Calculate the activity cost allocation rate for each of the five pools listed in the table. 2. Calculate the total cost of Job #624 (use an ABC costing system). 3. Why would ABC provide a more accurate allocation of manufacturing overhead (MOH) than a plantwide rate? 4. Assume that Carney Products used a traditional costing system rather than an ABC system. Its plantwide MOH rate would have been determined using direct labor (DL) hours as the allocation base. How much cost distortion would have occurred on this job? Carney Products has adopted an ABC costing system. The following manufacturing activities, indirect manufacturing costs, and cost drivers have been identified: B (Click the icon to view the activity costs and drivers.) The Job Cost Record for Job #624 revealed that direct materials requisitioned for the job totaled $1,140. The Job Cost Record also showed that direct labor for this job totaled 6 hours at a wage rate of $27 per hour. Other data collected on the resources used by Job #624 included: (Click the icon to view the other data.) Read the requirements. CO Requirement 1. Calculate the activity cost allocation rate for each of the five pools listed in the table. (Round the allocation rate to the nearest cent. Abbreviations used: DL = direct labor; MH = machine hour.) Activity cost allocation rate Direct labor costs Direct material costs Plantwide overhead rate Total activity allocation base Total activity cost pool Total hours Total manufacturing overhead Help Me Solve Clear All Check Answer Total revenues