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Question: Al Amar Manufacturing company's activity-based costing system has three cost pools: Machining, Set Up, and Other The overhead costs of the company consist of

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Question: Al Amar Manufacturing company's activity-based costing system has three cost pools: Machining, Set Up, and Other The overhead costs of the company consist of equipment depreciation and indirect labor which are allocated to the cost pools in proportion to the activity cost pools consumption of resources. Equipment depreciation OMR 50.000 Indirect labor OMR 5,000 Distribution of Resource Consumption by Cost Pool Machining Equipment depreciation OMR10,000 Indirect labor OMR 2,000 Total OMR12,000 Set Up OMR20,000 OMR 1,000 OMR21,000 Other OMR20,000 OMR 2,000 OMR22,000 Total OMR50,000 OMR 5,000 OMR55.000 Costs in the Machining cost pool are assigned to products based on machine-hours 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. Machine Hours Product X 3,500 Product Yl 16,000 Batches 300 700 Additional data concerning the company's products appears below: Product X Product Y Sales OMR165,000 OMR 180,000 Direct materials OMR 75,000 OMR 70.000 Direct labor OMR 72,000 OMR 75.000 Required: A Calculate activity rates for each activity cost pool using ABC. (1 Mark) B. Determine the amount of overhead cost that would be assigned to each product using ABC (2 Marks) C Determine the product margins for each product using ABC. (2 Marks)

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