Question
Sukhu Corporation's activity-based costing system has three activity cost pools--Fabricating, Setting Up, and Other. The company's overhead costs have already been allocated to these cost
Sukhu Corporation's activity-based costing system has three activity cost pools--Fabricating, Setting Up, and Other. The company's overhead costs have already been allocated to these cost pools as follows:
Fabricating | $ | 11,300 | |||||
Setting Up | $ | 34,900 | |||||
Other | $ | 17,800 | |||||
Costs in the Fabricating cost pool are assigned to products based on machine-hours (MHs) 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. The following table shows the machine-hours and number of batches associated with each of the company's two products:
MHs | Batches | |
Product M0 | 9,000 | 1,050 |
Product P9 | 4,000 | 1,450 |
Total | 13,000 | 2,500 |
Required:
Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.)
Activity Rate Activity Cost Pools Fabricating Setting up per MH per batch
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