Second-stage indirect cost-distribution allocation.

Leinad Corp. is a company that manufactures various products. The company has defined the following activities and activity rates in its activity-based cost system.

Direct labor $ 8.75 per hour of direct labor

Machine processing $ 3.75 per machine hour

Machine preparation $ 50 every preparation

Production order $ 200 for each order

Shipping and handling $ 150 by shipment

Product support $1,000 by product

Calculate the following,

Determines the total indirect cost that would be assigned to each of the following products (X, Y, Z) based on the expected activity level that is set for each. Prepare a table showing the calculations for these products using the above information. Remember to multiply the activity by its cost.

X Y Z

Direct labor 300 700 40

Machine Pressing 1,300 1,900 30

Machine Preparation 2 3 2

Production order 1 4 2

Shipping and handling 4 6 2

Product support 1 1 1