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H&Y Company uses four activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to

H&Y Company uses four activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead costs are as follows:

Activity Total Costs Volume of Cost Driver
Material handling $ 334,140 111,380 parts
Purchase orders 199,500 38 orders
Set-up hours 350,400 160 hours
Machining 462,550 3,190 machine hours
Total costs $1,346,590

The above activities are used by the two different products as follows:

PC-21 WX-34
Material handling 76,100 parts 35,280 parts
Purchase orders 16 22
Set-up hours 117 hours 43 hours
Number of machine hours 2,000 machine hours 1,190 machine hours

Calculate how much of the material handling cost will be allocated to PC-21.

Material handling cost allocated to PC-21 $

Determine the ABC allocation rate for purchase orders.

Activity-based allocation rate $ per order

Calculate how much of the set-up costs will be allocated to WX-34.

Set-up costs allocated to WX-34 $

Calculate how much of the total activity costs will be allocated to PC-21.

Total activity costs allocated to PC-21 $

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