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Machining, Setting Up, and Other are the three activities that XYZ Corporation uses to allocate overhead in its activity-based costing system. Overhead costs have already
Machining, Setting Up, and Other are the three activities that XYZ Corporation uses to allocate overhead in its activity-based costing system. Overhead costs have already been allocated to these cost pools as follows: Machining Setting Up Other $ 75,855 $116,852 $ 19,300 Costs in the Machining cost pool are assigned to products based on machine-hours (MHs). Costs in the Setting Up cost pool are assigned to products based on the number of batches, and costs in the Other cost pool are not assigned to products. The following information shows the machine-hours and number of batches associated with each of the two products Product K Product W MHS 2,780 8,890 11,670 Batches 1,700 530 2,230 Total Additional data concerning the company's products appears below: Sales (total) Direct materials (total) Direct labor (total) Product KO Product W9 $307,000 $234,000 $ 86,800 $ 86,900 $ 93,600 $ 58,000 Required A Required B Required C Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.) Activity Cost Pools Activity Rate Machining per MH per batch Setting up Required A Required B Required C. Determine the amount of overhead cost that would be assigned to each product using activity-based costing. (Round intermediate calculations to 2 decimal places.) Amount of Overhead Cost Product Ko Product W9 Required A Required B Required Determine the product margins for each product using activity-based costing. (Round intermediate calculations to 2 decimal places.) Product Margin Product KO Product W9
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