Foster Company manufactures two products (XX and YY). The overhead costs have been divided into four cost pools that use the following Drivers:

Product Number of orders Number of setups Number of labor transactions Labor hours

XX 60 20 50 2000

YY 20 80 70 500

Cost per pool $16000 $13,000 $2,400 $20,000

Required:

a. Compute the allocation rates for each of the activity drivers listed.

b. What are the total costs assigned to products XX and YY using activity-based costing?

c. Compute the overhead rate using labor hours under the functional-based costing system.

d. What are the total costs assigned to products XX and YY using the functional based costing system overhead rate calculated in part (c).