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Groleau Corporation has an activity-based costing system with three activity cost pools--Processing. Setting Up, and other. The company's overhead costs, which consist of factory utilities
Groleau Corporation has an activity-based costing system with three activity cost pools--Processing. Setting Up, and other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine hours (MHS) and costs in the Setting up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the two products and the company's costs and activity-based costing system appear below. Factory utilities (total) Indirect labor (total) 534,280 $12,800 Distribution of Resource Consumption Across Activity Cost Pools Processing Factory utilities Indirect labor Setting Up 0.30 8.10 Other 9.30 8.70 0.20 MS Product SH Product F1 Total 3,78e 2.200 11,400 Batches 1.300 200 2.000 Sales (total) Direct materials (total) Direct labor (total) Products 57,00 322, $35,00 Product ! $ 101,700 18.700 5 41,00 Required: 3. Assign overhead costs to activity cost pools using activity-based costing b. Calculate activity rates for each activity cost pool using activity-based costing c. Determine the amount of overhead cost that would be assigned to each product using activity based costing d. Determine the product margins for each product using activity-based costing Complete this question by entering your answers in the tabs below
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