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Chuang Corporation's activity-based costing system has three-activity cost pools Machining, Setting Up, and Other. The company's overhead costs have already been allocated to these cost
Chuang Corporation's activity-based costing system has three-activity cost pools Machining, Setting Up, and Other. The company's overhead costs have already been allocated to these cost pools as follows: Machining Setting Up Other $52,200 $9,300 $25,500 Costs in the Machining cost pool are cost pool products. The following table shows the machine-hours and number of batches associated with each of the company's two products: assigned to products based on machine-hours (MHs) and costs in the Setting Up assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to are MHs Batches 200 1,200 8.800 10.000 Additional data concerning the company's products appears below Product D5.. Product R5 Total 1.800 2,000 Product D5 $213,300 $102,700 $94,200 Product R5 $240,400 $118,500 $59,700 Sales (total). Direct materials (total) Direct labor (total). Required: a. Calculate activity rates for each activity cost pool using activity-based costing. Copy and paste this form to complete part a (show calculations): Activity Cost Pool Total Activity Activity Rate Total Cost Machining Setting up Other b. Determine the amount of overhead cost that would be assigned to each product using activity-based costing. Copy and paste this form to complete part b (show calculations): Activity Product D5 Product R5 Cost allocated Activity Activity Rate Cost allocated Machining Setting up Other Total c. Determine the product margins for each product using activity-based costing. Copy and paste this form to complete part (show calculations): C Product R5 Product D5 Sales Direct materials Direct labor Overhead Product margin Hint: Product margin for D5 $9,206, for R5- $7,894
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