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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

Machining

Setting Up

Other

Total

Equipment depreciation

$

7600

$

44,200

$

22,000

$

73,800

Indirect labor

1800

2000

3200

7000

Total

$

9400

$

46,200

$

25,200

$

80,800

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:

MHs

Batches

Product Z3

5100

300

Product T1

5300

900

Total

10,400

1200

Product Z3 Product T1

Sales (total)

$

212,800

$

246,500

Direct materials (total)

$

79,500

$

95,800

Direct labor (total)

$

108,200

$

100,700

Required:

Calculate the following:

Machining Activity Rate

$

Setting up Activity Rate

$

Amount of OH applied to product Z3 (round to the nearest dollar)

$

Amount of OH applied to product T1 (round to the nearest dollar)

$

Product Margin Z3 (round to the nearest dollar)

$

Product Margin T1 (round to the nearest dollar)

$

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