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) Villasenor Company manufactures two products (M and N). The overhead costs ($82,000) have been divided into four cost pools that use the following activity

) Villasenor Company manufactures two products (M and N). The overhead costs ($82,000) have been divided into four cost pools that use the following activity drivers:

Number Number Number

of of of Labor Labor

Product Orders Setups Transactions Hours

M 30 40 60 2,000

N 50 60 90 500

Cost per pool $24,000 $19,000 $9,000 $30,000

Additionally, Villesenor incurred the following amounts of direct materials and direct labor on products M and N:

M N Total

Direct materials $45,000 $40,000 $85,000

Direct labor 35,000 25,000 60,000

Total $80,000 $65,000 $145,000

Required:

a. Determine the single plantwide factory overhead rate using direct labor hours as the allocation base.

b. Determine the total overhead costs assigned individually to products M and N using the single plantwide factory overhead rate determined in part (a) above.

c. Determine the activity rate for each activity.

d. Determine the total activity (overhead) costs assigned to products M and N using the activity rates found in part c.

e. Determine the total product costs assigned to products M and N using the activity rates found in part c.

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