Answered step by step
Verified Expert Solution
Question
1 Approved Answer
MECURIT Saved Greife Corporation's activity-based costing system has three activity cost pools-Machining, Setting Up, and Other. The company's overhead costs have already been allocated to
MECURIT Saved Greife Corporation's activity-based costing system has three activity cost pools-Machining, Setting Up, and Other. The company's overhead costs have already been allocated to these cost pools as follows: Machining Setting Up Other $ 104,904 $ 140,980 $ 20,600 Costs in the Machining cost pool are assigned to products based on machine-hours (MHS) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. The following table shows the machine-hours and number of batches associated with each of the company's two products: Product O Product W9 Total MHs 2,670 Batches 1,620 8,610 1,030 11,280 2,650 Additional data concerning the company's products appears below: Sales (total) Direct materials (total)) Product KO $292,000 $ 82,200 $:91,300 Product W9 $ 298,000 $ 92,800 $ 65,500 Direct labor (total) Required: a. Calculate activity rates for each activity cost pool using activity-based costing b. Determine the amount of overhead cost that would be assigned to each product using activity-based costing. c. Determine the product margins for each product using activity-based costing. Complete this question by entering your answers in the tabs below. Required A Required B Required C Help Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate activity rates for each activity cost pool using activity-based costing. (Ro Activity Cost Pools Activity Rate Machining per MH Setting up per batch Required B > Required A Required B Required C Determine the amount of overhead cost that would be assigned to each product u intermediate calculations to 2 decimal places.) Product KO Product W9 Amount of Overhead Cost Required A ermine the product margins for each product using activity-based costing. Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the product margins for each product using activity-based costing. (Round int- places.) Product KO Product W9 Product Margin Required. R
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started