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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 Machining Setting Up Other Total Equipment depreciation Indirect labor Total 8800 S 47.200 23.200 S 79,200 10,000 5 12,400 49800 27000 S 89.200 3600 2600 3800 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 Product T1 Total 5700 5900 11.600 600 1200 Product Z3 Product T1 Sales (total) Direct materials (total) Direct labor (total) 5 224,800 S 252.500 5 82,500 97.000 5 109.400 103.700 Required Calculate the followin 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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