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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 depreciation 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 depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources 7 Equipment depreciation (totat) Indirect labor (total) $33,200 $ 7,100 Skipped Distribution of Resource Consumption Across Activity Cost Pools Machining 0.20 0.50 Setting Up 0ther 0.5e 0.30 Equipment depreciation Indirect labor 0.30 0.20 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 MHs 12,000 4,200 16, 200 Batches 900 1,400 2,300 Product S4 Product Ce Total Additional data concerning the company's products appears below: Product S4 $83,800 $24,200 $40,200 Product ce $75,900 $29,300 $ 30,700 Sales (total Direct materials (total) Direct labor (total) 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 assigined 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 A Required B Required C Required D Assign overhead costs to activity cost pools using activity-based costing. ActiuitePaet Danle Required A Required B Required C Required D Calculate activity rates for each activity cost pool using activity-based costing. (Round yo Activity Cost Pools Machining Setting up Activity Rate per MH per batch Required D Required A Required B Required C Required D Determine the product margins for each product using activity-based costing. (Round inter decimal places.) Product Margin Product S4 Product CO Required C Required D
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