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Company manufacturers two products (X and Y). Total overhead costs of $610,000 has been divided into four cost pools that use the following activity drivers:

Company manufacturers two products (X and Y). Total overhead costs of $610,000 has been divided into four cost pools that use the following activity drivers:

Produts machine hrs. Number of Setups Number of orders Number of Shpments Totals

X 1,000 200 500 1000

Y 3,000 50 300 500

Cost per pool $100,000 $230,000 $160,000 $120,000 $610,000

Required:

a) compute the allocation rates per each acitivity drivers listed above

b) what is the total overhead costs assigned to Products X and Y assuming that overhead costs are allocated using th activity-based costing method?

c) compute the plant-wide rate overhead rate based on machine hours

d) what is the total overhead costs assigned to the products X and Y assuming that overhead costs are allocated using the plant-wide rate calculated in part (c).

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