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Arizona Corporation manufactures two products: Product G 5 and Product E 4 . The company uses a plantwide overhead rate based on direct labor -

Arizona Corporation manufactures two products: Product G5 and Product E4. The company uses a plantwide
overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC)
system that allocates all of its manufacturing overhead to four cost pools. The following additional information
is available for the company as a whole and for Products G5 and E4.
Activity Cost Pool Activity Measure Total Cost Total Activity
Machining Machine-hours $ 100,0005,000 MHs
Machine setups Number of setups $ 300,000500 setups
Product design Number of products $ 80,0002 products
Order size Direct labor-hours $ 350,00010,000 DLHs
Activity Measure Product G5 Product E4
Machine-hours 2,0003,000
Number of setups 270230
Number of products 11
Direct labor-hours 3,0007,000
Required:
a. Using the plantwide overhead rate, what amount of the total overhead cost is allocated to Product G5?
b. Using the plantwide overhead rate, what amount of the total overhead cost is allocated to Product E4?
c. Using the activity-based costing system, what amount of the total overhead cost is assigned to Product G5?
d. Using the activity-based costing system, what amount of the total overhead cost is assigned to Product E4?

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