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Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead
Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products B567 and D32N. Activity Cost Pool Machining Machine setups Product design Order size Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Total Cost Total Activity $330,000 15,000 MHS $ 50,000 100 setups $ 88,000 2 products $280,000 10,000 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Product B567 D32N 6,000 9,000 - 80 20 1 1 6,000 4,000 What is the activity rate for the Machining activity cost pool
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