Question
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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