Question
Dion Corporation uses activity-based costing to determine product costs for external financial reports. The corporation has provided the following information regarding its activity-based costing system.
Dion Corporation uses activity-based costing to determine product costs for external financial reports. The corporation has provided the following information regarding its activity-based costing system.
activity cost pool activity measure estimated overhead coast
machine related machine hours 488000$
batch setup setups 270000$
general factory direct labor hours 184000$
The below table shows the expected activity.
activity cost pool product x product y total
machine related 3000$ 5000$ 8000$
batch setup 4500$ 1500$ 6000$
general factory 3000$ 5000$ 8000$
8. What is the activity rate for the Machine Related activity cost pool? *
9. What is the activity rate for the Batch Setup activity cost pool? *
10. What is the total amount of overhead cost allocated to product Y, assuming that the actual activity is the same as the expected activity? *
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