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 Activity Rates Supporting direct labor S12 per direct labor-hour Machine processing S8 per machine hour Machine set-ups S100 per set up Production orders S180 per order Shipments S28 per shipment Product sustaining $1,680 per product Activity data have been supplied for the following products: Total Expected Activity American Model European Model Number of units produced per year 100 200 Direct Labor Hours 40 60 Machine-bours 120 180 Machine set-ups 5 Production Orders 4 Shipments Product sustaining Required: How much total overhead cost would be assigned to the American and European models using the activity-based costing systems? 2 4 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 Activity Rates Supporting direct labor S12 per direct labor-hour Machine processing S8 per machine hour Machine set-ups S100 per set up Production orders S180 per order Shipments S28 per shipment Product sustaining $1,680 per product Activity data have been supplied for the following products: Total Expected Activity American Model European Model Number of units produced per year 100 200 Direct Labor Hours 40 60 Machine-bours 120 180 Machine set-ups 5 Production Orders 4 Shipments Product sustaining Required: How much total overhead cost would be assigned to the American and European models using the activity-based costing systems? 2 4