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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
The below table shows the expected activity.
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? *
Activity Measure Machine Hours Activity Cost Pool Machine Related Batch Setup General Factory Estimated Overhead Cost $488,000 $270,000 Setups Direct Labor Hours $184,000 Product X Product Y Total Activity Cost Pool Machine Related 3,000 5,000 8,000 6,000 4,500 1,500 Batch Setup General Factory 3,000 5,000 8,000
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