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Koutz Corporation uses activity based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools- Processing. Supervising,
Koutz Corporation uses activity based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools- Processing. Supervising, and Other. The costs in those activity cost pools appear below. Processing $36,100 Supervising $10,400 Other $47,500 Processing costs are assigned to products using machine-hours (MHS) and Supervising costs are assigned to products using the number of batches. The cosb in the Other activity cost pool are not assigned to products Activity data appear below MHS (Processing) Batches (Supervising) Product 07 8.900 800 Product G9 1.100 1.2002 Total 10.000 2009 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Product 07 Product G9 Sales (total) $265 100 $177.700 Dired materials (total) $104.900 $94,400 Direct labor (total) $113 800 $65 100 The activity rate for the Processing activity cost pool under activity based costing is closest to $3.56 per MH O $0.63 por MH $3,61 per MH $9 40 per MH
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