Enger Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Processing, Supervising, and Other. The costs in those activity cost pools appear below: processing...4,600

superivising.... 16,500

other..... 14,900 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 appear below:

MHs (processing) Batches (Superivising)

product Q7...... 4700 100

Product U8........ 5300 900

total.... 10,000 1,000 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. sales (total)............ 82,100 90,700

direct materials (total) 48,600 48,300

direct labor (total).. 25,900 21,200

9. The activity rate for the Processing activity cost pool under activity-based costing is closest to: A. $15.00 per MH B. $3.60 per MH C. $0.46 per MH D. $0.31 per MH

Processing: $_______ _______ MHs = $______ per MH

10. What is the overhead cost assigned to Product Q7 under activity-based costing? A. $1,650 B. $3,812 C. $18,000 D. $2,162

Assign overhead costs to products: