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Michael Scott Paper Company manufactures two products (X and Y). The overhead costs ($84,000) have been divided into three cost pools that use the following

Michael Scott Paper Company manufactures two products (X and Y). The overhead costs ($84,000) have been divided into three cost pools that use the following activity drivers:

Product

Number of Setups

Machine Hours

Packing Orders

X

10

500

75

Y

10

2,000

175

Cost per pool

$9,000

$60,000

$15,000

Using a plant wide rate, what is the amount of overhead cost to be assigned to Product X using machine hours as the allocation base?

What is the allocation rate per packing order using activity-based costing?

If the number of machine hours is used to assign machine hour cost, determine the amount of machine hour cost to be assigned to Product X

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