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Saved Help Save & Exit Submit Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two
Saved Help Save & Exit Submit Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense--to three activity cost pools--Machining Order Filling, and Other-based on resource consumption. Data to perform these allocations appear below. Overhead costs Equipment depreciation Supervisory expense $39,000 $11,500 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Machining Order Filling @.50 0.3e @.50 0.20 Other @.20 0.30 Equipment depreciation Supervisory expense In the second stage. Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity: Orders (Order Filling) 138 940 1,078 MHS (Machining) 5,540 23,988 29,440 Product W Product Me Total
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