Question
Musich Corporation has an activity-based costing system with three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation
Musich Corporation has an activity-based costing system with three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, have been allocated to the cost pools already and are provided in the table below.
Activity Cost Pools
1.Machining 2.Setting Up 3.Other 4.Total
Equipment depreciation 1.$ 9200 2.$ 48,200 3.$ 23,600 4.$ 81,000
Indirect labor 1. 4200 2. 2800 3. 4000 4. 11,000
Total 1.$ 13,400 2.$ 51,000 3.$ 27,600 4.$ 92,000
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. Data concerning the two products and the company's costs appear below:
1. MHs 2.Batches
Product Z3 1. 5900 2. 700
Product T1 1. 6100 2. 1300
Total 1. 12,000 2. 2000
1. Product Z3 2. Product T1
Sales (total) 1. $ 228,800 2. $ 254,500
Direct materials (total) 1. $ 83,500 2. $ 97,400
Direct labor (total) 1. $ 109,800 2. $ 104,700
Required: Calculate the following:
1)Machining Activity Rate $
2)Setting up Activity Rate $
3) Amount of OH applied to product Z3 (round to the nearest dollar) $
4)Amount of OH applied to product T1 (round to the nearest dollar) $
5)Product Margin Z3 (round to the nearest dollar) $
6)Product Margin T1 (round to the nearest dollar) $
MUSILI Corporation has an aluvily-baseu Cung system with Tee aliviLy Cost POUS-Maching, Selling up, and other. The cornparty's Overhead costs, which conSSLO table below equipment depreciation and indirect Tabor,Have been allocated to the cost pools already and are provided in the Activity Cost Pools Machining Setting us ather Total Equipment Depreciation Indirect labor $ 9200 $ 48,200 $ 23,600 $ 31,000 4200 2900 4000 11,000 $ 13,400 $ 51.000 5 27.500 $ 92.000 Tatal Casts in the Machining cost pool are assigned to products based on machine-hours MHs) and costs in the Setting Up Cost pool are assipned to products based on the number of batches, Costs in the other cost pool are not assiered to products. Data concerning the two products and the company's costs appear below. MHS Batches Product 23 5900 6100 700 1300 Product 11 Total 12,000 2000 Product T1 Sales (total) Direct materials (total) Direct labor (total) Product 3 $ 228,800 $ 254,500 $ 83,500 $ 97,400 $ 109,800 $ 104,700 Required: Cakulate the follcavine Machining Acty Rate Setting up Activity Rate Amount of OH applied to product 23 (round to the nearest dollar Armount of OH applied to product T1 (round to the nearest dollar Product Margin- nearest dollar round ta the Product Margin-T1 round to theStep by Step Solution
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