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II. Activity Based-Costing (20 points total) Honda Corporation is a diversified manufacturer which builds many types of engine-equipped transportation vehicles. The Electronic Bicycle Division (EBD)
II. Activity Based-Costing (20 points total) Honda Corporation is a diversified manufacturer which builds many types of engine-equipped transportation vehicles. The Electronic Bicycle Division (EBD) produces two types of engine- equipped bicycles. The EBD's activity-based costing system contains the following six activity cost pools and activity rates. Activity Cost Pool Supporting direct labor Machine processing Machine set-ups Production orders Shipments Product sustaining Activity Rates $12 per direct labor-hour $8 per machine hour $100 per set up $180 per order $28 per shipment $1,680 per product Activity data have been supplied for the following products: Number of units produced per year Direct Labor Hours Machine-hours Machine set-ups Production Orders Shipments Product sustaining Total Expected Activity American Model European Model 100 200 40 I 60 120 180 S 4 4 5 10 2 1 Required: How much total overhead cost would be assigned to the American and European models using the activity-based costing systems
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