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Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two

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Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment expense Indirect labor $ 48,000 $ 7,300 Distribution of Resource Consumption Across Activity Cost Pools: Equipment expense Indirect labor Activity Cost Pools Processing Supervising Other 0.30 0.30 0.60 0.40 0.10 0.30 Processing costs are assigned to products using machine-hours (MHS) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: MHs Batches Product F6 18,100 (Processing) (Supervising) 890 Product X0 1,150 980 Total 19,250 1,870

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