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Torello Corporation manufactures two products: Product H95V and Product V93N. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing
Torello Corporation manufactures two products: Product H95V and Product V93N. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional Information is available for the company as a whole and for Products H95V and V93N. Activity Cost Pool Machining Machine setups Product design Order size Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Total cost $ 242,000 $ 140,000 $ 70,eee $ 270,000 Total Activity 11,000 MHS 350 setups 2 products 10,000 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Product H95V 193N 6,000 5,000 250 100 1 1 6,000 4,000 What is the company's plantwide overhead rate? Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Product H95V V93N 6,000 5,090 250 100 1 1 6,800 4,800 What is the company's plantwide overhead rate? Multiple Choice $120.33 per direct laborehour 57220 per direct labor our 5180.50 per direct 3 bor-hour $2700 per olteci labor.nour The following data have been provided by Letze Corporation from its activity-based costing accounting system Factory supervision Indirect factory labor $ 460,000 $ 220,000 Distribution of Resource Consumption across Activity Cost Pools: Activity Cost Pools Factory supervision Indirect factory labor Batch set-up 55% 60% Expediting 35% 20% other 10% 20% Total 100% 100% The "Other activity cost pool consists of the costs of Idle capacity and organizatlon-sustaining costs that are not assigned to products. How much factory supervision and Indirect factory labor cost would NOT be assigned to products using the activity-based costing system? Multiple Choice $90,000 $460.000 5220.000 50
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