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Calculate the following: Machining Activity Rate $ Setting up Activity Rate $ Amount of OH applied to product Z3 (round to the nearest dollar) $
Calculate the following:
Machining Activity Rate | $ |
Setting up Activity Rate
$
Amount of OH applied to product Z3 (round to the nearest dollar)
$
Amount of OH applied to product T1 (round to the nearest dollar)
$
Product Margin Z3 (round to the nearest dollar)
$
Product Margin T1 (round to the nearest dollar)
Musich Corporation has an activity-based costing system with three activity cost pools--Machining, Setting Up, and other. The company's overhead costs, which consist of equipment depreciation and indirect labor, have been allocated to the cost pools already and are provided in the table below. Activity Cost Pools Setting Machining Up Other Total Equipment depreciation $ 7600 $ 44,200 $ 22,000 $ 73,800 Indirect labor 1800 2000 3200 7000 Total $ 9400 $ 46,200 $ 25,200 $ 80,800 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. Data concerning the two products and the company's costs appear below: MHs Batches Product Z3 5100 300 Product T1 5300 900 Total 10,400 1200 Product Z3 Product T1 Sales (total) $ 212,800 $ 246,500 $ 79,500 $ 95,800 Direct materials (total) Direct labor (total) $ 108,200 $ 100,700Step by Step Solution
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