Questions 13 - 15 are based on the following (Questions 13, 14, and 15 are all on this page):

Oakland Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost poolsProcessing, Supervising, and Other. The costs in those activity cost pools appear below:

Processing

$ 5,170

Supervising

$ 31,640

Other

$ 11,900

Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:

MHs (Processing)

Batches (Supervising)

Product Q0

10,400

700

Product Q5

600

700

Total

11,000

1,400

Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.

Product Q0

Product Q5

Sales (total)

$ 84,700

$ 97,400

Direct materials (total)

$ 30,000

$ 32,900

Direct labor (total)

$ 29,300

$ 43,200

13. The activity rate for the Processing activity cost pool under activity-based costing is closest to:

a.

$8.62 per MH

b.

$2.87 per MH

c.

$0.47 per MH

d.

$1.08 per MH

14. The activity rate for the Supervising activity cost pool under activity-based costing is closest to:

a.

$22.60 per batch

b.

$45.20 per batch

c.

$0.49 per batch

d.

$8.50 per batch

15. What is the overhead cost (ABC costs) assigned to Product Q5 under activity-based costing?

a.

$21,735

b.

$16,102

c.

$41,000

d.

$32,655