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Howell Corporation's activity-based costing system has three activity cost pools-Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreclation and indirect
Howell Corporation's activity-based costing system has three activity cost pools-Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreclation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation (total) $35,500 Indirect labor (total) $ 7,360 Distribution of Resource Consumption Across Activity Cost Pools Setting Up Machining Other Equipment depreciation 0.30 0.30 0.40 Indirect labor 0.50 0.40 0.10 Costs in the Machining 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 Batches MHs Product S4 9.100 600 7,400 2,000 Product co 16,500 2,600 Total Additional data concerning the company's products appears below Product 4 Product co Sales (total) pirect materials 83,700 $84,200 $30,600 $28,000 (total) pirect labor (total) $39,700 34,400 Required: a. Assign overhead costs to activity cost pools using actlvity-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. Required Required Required Required A C Assign overhead costs to activity cost pools using activity-based costing. Activity Cost Pools Machining Setting Up Total Other Equipment depreciation Indirect labor Total Required B> Required A
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