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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 $ 220,440 110,220 parts
Purchase orders 220,520 37 orders
Set-up hours 352,000 160 hours
Machining 456,000 3,040 machine hours
Total costs $1,248,960

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

PC-21 WX-34
Material handling 76,210 parts 34,010 parts
Purchase orders 17 20
Set-up hours 119 hours 41 hours
Number of machine hours 2,100 machine hours 940 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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