(The following data is used in questions 21 through 24) Ham Corporation has an activity-based costing system with three activity cost poolsFabrication, Order Processing, and other. In the first stage allocation, costs in the two overhead accounts, depreciation expense and indirect materials, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocation is as follows: Overhead Costs: Depreciation Expense $96,000 Indirect Materials $8.000 Total $104,000 The distribution of resource consumption across activity cost pools is given below: Fabrication Order Processing Other Total Depreciation Expense 25% 10% 65% 100% Indirect Materials 30% 20% 50% 100% In the second stage, Fabrication costs are assigned to products using machine-hours and Order Processing 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 for the company's two products follow: Fabrication Order Processing (machine-hours) (orders) Product W2 9,200 1,300 Product D3 6.800 700 Total 16,000 2,000 Finally, the costs of Fabrication and Order Processing are combined with the following sales and direct cost data to determine product margins. Sales (total) Direct materials (total) Direct labor (total) Product W2 $223,000 $76,000 $58,500 Product D3 $172,000 $61,000 $93,500 How much overhead cost is allocated to the Fabrication activity cost pool under activity-based costing first stage of allocation? (The following data is used in questions 21 through 24) Ham Corporation has an activity-based costing system with three activity cost pools-Fabrication, Order Processing, and Other. In the first stage allocation, costs in the two overhead accounts, depreciation expense and indirect materials, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocation is as follows: Overhead Costs: Depreciation Expense Indirect Materials Total $96,000 $8,000 $104,000 The distribution of resource consumption across activity cost pools is given below: Fabrication Order Processing Other Total Depreciation Expense 25% 10% 65% 100% Indirect Materials 30% 20% 50% 100% In the second stage, Fabrication costs are assigned to products using machine-hours and Order Processing 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 for the company's two products follow: Fabrication Order Processing (machine-hours) (orders) Product W2 9,200 1,300 Product D3 6.800 Total 16,000 2,000 Finally, the costs of Fabrication and Order Processing are combined with the following sales and direct cost data to determine product margins. Product W2 Product D3 Sales (total) $223,000 $172,000 Direct materials (total) $76.000 $61,000 Direct labor (total) $58,500 $93,500 700 The activity rate for the Fabrication activity cost pool (per batch) under activity-based costing is: (The following data is used in questions 21 through 24) Ham Corporation has an activity-based costing system with three activity cost pools-Fabrication, Order Processing, and Other. In the first stage allocation, costs in the two overhead accounts, depreciation expense and indirect materials, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocation is as follows: Overhead Costs: Depreciation Expense $96,000 Indirect Materials $8.000 Total $104.000 The distribution of resource consumption across activity cost pools is given below: Fabrication Order Processing Other Total Depreciation Expense 25% 10% 65% 100% Indirect Materials 30% 20% 50% 100% In the second stage. Fabrication costs are assigned to products using machine-hours and Order Processing 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 for the company's two products follow: Fabrication Order Processing (machine-hours) (orders) Product W2 9.200 1,300 Product D3 6.800 700 Total 16,000 2,000 Finally, the costs of Fabrication and Order Processing are combined with the following sales and direct cost data to determine product margins. Product W2 Product D3 Sales (total) $223,000 $172,000 Direct materials (total) $76,000 $61,000 Direct labor (total) $58,500 $93,500 What is the overhead cost assigned to Product D3 under activity-based costing? (The following data is used in questions 21 through 24) Ham Corporation has an activity-based costing system with three activity cost pools-Fabrication, Order Processing, and Other. In the first stage allocation, costs in the two overhead accounts, depreciation expense and indirect materials, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocation is as follows: Overhead Costs: Depreciation Expense $96,000 Indirect Materials $8,000 Total $104,000 The distribution of resource consumption across activity cost pools is given below: Fabrication Order Processing Other Total Depreciation Expense 25% 10% 65% 100% Indirect Materials 30% 20% 50% 100% In the second stage, Fabrication costs are assigned to products using machine-hours and Order Processing 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 for the company's two products follow: Fabrication Order Processing (machine-hours) (orders) Product W2 9,200 1,300 Product D3 6.800 700 Total 16,000 Finally, the costs of Fabrication and Order Processing are combined with the following sales and direct cost data to determine product margins. Product W2 Product D3 Sales (total) $223,000 $172,000 Direct materials (total) $76,000 $61,000 Direct labor (total) $58,500 $93.500 2,000 What is the product margin for Product D3 under activity-based costing
