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EMD Corporation manufactures Product S. It is considering implementing an activity-based costing (ABC) system that allocates all of its indirect costs to four cost pools.

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EMD Corporation manufactures Product S. It is considering implementing an activity-based costing (ABC) system that allocates all of its indirect costs to four cost pools. The following additional information is available for the company as a whole and for Product S. Activity Cost Pool Activity Mensure Total Cost Total Activity Onder processing Number of orders $340,000 20,000 orders Machine setups Number of setups $180,000 600 setups Customer relation Number of customers $84,000 700 customers The company just completed orders from a specific customer - PG Inc., and has the following information gathered. Orders processed for the customer PG, Inc.: 20 orders for Product S, Machine has been set up 4 times to manufacture these Ss. Product S: direct cost information Direct labor cost per unit - $5 Direct materials cost per unit = $2 Sell Price = $17, a total of 800 Ss being sold to PG, Inc. 1 2 3 4 5 6 000 voin 1. Compute the activity rates for each cost pool. 19 20 21 22 23 24 25 26 27 28 2. Calculate the total indirect overhead cost being allocated to the customer - PG, Inc.? 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 3. Calculate the customer margin for the customer - PG, Inc

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