Chapter 7 In-Class Case Vontungein Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts - equipment depreciation and supervisory expense - to three activity cost pools - Machining, Order Filing, and Other. Allocation is based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation. Supervisory expenses $64,000 $4,000 Distribution of resource consumption across activity cost pools: Activity Cost Pools Order Filling 0.30 0.10 Machining 0.50 0.10 Equipment depreciation Supervisory expense Other 0.20 0.80 In the second stage, 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: Product 16 Product E9 Total MHs (Machining) 7,600 12,400 20,000 Orders (Order Filling) 600 400 1,000 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine predstavni In the second stage, 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: Product 16 Product E9 Total MHs (Machining) 7,600 12,400 20,000 Orders (Order Filling) 600 400 1,000 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Sales and direct cost data: Sales (total) Direct materials (total Direct labor (total) Product 16 $182,400 $93,700 $52,700 Product 19 $147,800 $46,800 $65,300 Required: 1. Assign overhead costs to the activity cost pools. (First-stage allocation). 2. Calculate the activity rates for the activity cost pools. 3. Assign overhead costs to each product. 4. Prepare a product margin report showing the product margin of each product. 46