1. Villasenor Company manufactures two products (M and N).The overheadcosts ($82,000) have been dividedinto four cost pools that use the following activitydrivers:

Product	Numberof Orders	Numberof Setups	NumberofLabor Transactions	Labor Hours
M	30	40	60	2,000
N	50	60	90	500

Costperpool $24,000 $19,000 $9,000 $30,000

Additionally, Villesenor incurred the followingamounts ofdirectmaterials and direct laboron products Mand N:

		M	N	Total
Direct materials	$45,000	$40,000	$85,000
Directlabor	35,000	25,000	60,000
Total	$80,000	$65,000	$145,000
Required:

1. Determinethesingleplantwidefactoryoverhead rateusingdirectlaborhoursastheallocation base.

1. Determinethetotaloverhead costsassignedindividuallytoproducts Mand Nusingthesingle plantwide factory overhead rate determined in part (a) above.

1. Determinetheactivityrateforeachactivity.

1. Determinethetotalactivity(overhead)costsassigned productsMandNusingtheactivity rates found in part c.

1. Determinethetotalproduct costsassignedtoproductsM andNusingtheactivity ratesfoundin partC.