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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
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) $38,700 $13, 480 Distribution of Resource Consumption Across Activity Cost Pools Factory utilities Indirect labor Processing 0.20 0.30 Setting Up 0.50 0.30 Other 0.30 8.40 Batches Factory utilities (total) Indirect labor (total) $38,700 $13, 490 Distribution of Resource Consumption Across Activity Cost Pools Factory utilities Indirect labor Processing 0.29 0.30 Setting Up 0.50 0.30 Other 9.30 0.40 MHS Product S8 Product F1 3,500 7,300 10,800 Batches 700 600 1,300 Total Dnnd SR Product 58 Product F1 Total HHS 3,500 7,300 19,800 Batches 700 600 1,300 Sales (total) Direct materials (total) Direct labor (total) Product S8 $80,880 $27,500 $33,900 Product F1 $ 180,500 $ 40,300 $ 35,300 Required: a. 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. Calculate activity rates for each activity cost pool using activity based costing. (Round your answers to 2 decimal places.) Activity Cost Pools Processing Setting up Activity Rate per MH per batch Required A Required B Required Required D Determine the amount of overhead cost that would be assigned to each product using activity-based costing. (Round Intermediate calculations to 2 decimal places.) Amount of Overhead Cost Product S8 Product F1 Required A Required B Required Requiredib Determine the product margins for each product using activity-based costing. (Round intermediate calculations to 2 decimal places Product Margin Product S8 Product F1
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