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Prince Company manufactures two products - 14,000 units of Product M and 6,000 units of Product N. The company uses a plantwide overhead rate based

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Prince Company manufactures two products - 14,000 units of Product M and 6,000 units of Product N. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products M and N: ngs Activity Cost Pool Machining Setups Product Design General Factory Activity Cost Driver Estimated Total MOH Machine hrs (Mhrs) $200,000 Number of setups $100,000 Number of products $84,000 Direct Labor Hours (Dih) $300,000 Expected Activity 10,000 Mhrs 200 setups 2 products 12,000 Dihs Activity Cost Driver Machine hrs (Mhrs) Number of setups Number of products Direct labor hours Product M 7,000 50 Product N 3,000 150 1 1 8,000 4,000 Required (You may submit your answer as an uploaded excel document or word document, or text entry into dropbox or a picture): 1. What is the company's plantwide overhead rate? 2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product M? How much is allocated to Product N? 3. What is the activity rate for the Machining activity cost pool? 4. What is the activity rate for the Machine Setups activity cost pool? 5. What is the activity rate for the Product Design activity cost pool? 6. What is the activity rate for the General Factory activity cost pool? 7. Which of the four activities is a batch-level activity? Why? 8. Which of the four activities is a product-level activity? Why? 9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product M? 10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product N

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