Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 or equipment depreciation

image text in transcribed

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 or 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 Indirect labor $ 9400 $ 48,700 $ 23,800 $ 81,900 4500 2900 4100 11,500 $ 13,900 $ 51,600 $ 27,900 $ 93.400 Total 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 6000 6200 12,200 750 1350 2100 Total Product Z3 Product T1 Sales (total) Direct materials (total) Direct labor (total) $ 230,800 $ 255,500 $ 84,000 $ 97,600 $ 110,000 $ 105,200 Required: Calculate to Activity Rate Calculate the following: Machining Activity Rate Setting up Activity Rate s 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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions