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129. Kapoor Corporation uses the following activity rates from its activity-based costing to
assign overhead costs to products.
Data concerning two products appear below:
Required:
a. How much overhead cost would be assigned to Product J00A using the company’s activity–
based costing system? Show your work!
b. How much overhead cost would be assigned to Product S06U using the company’s activity-
based costing system? Show your work!
130. Alongi Corporation uses the following activity rates from its activity-based costing to
assign overhead costs to products.
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131. Murri Corporation has an activity-based costing system with three activity cost pools–
Processing, Setting Up, and Other. The company’s overhead costs, which consist of factory
utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools’
consumption of resources. Costs in the Processing 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. Data
concerning the two products and the company’s costs and activity-based costing system appear
below:
Required:
a. Assign overhead costs to activity cost pools using activity-based costing.
b. Calculate activity rates for each activity cost pool using activity-based costing.
c. Determine the amount of overhead cost that would be assigned to each product using activity-
based costing.
d. Determine the product margins for each product using activity-based costing.
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132. Spadaro Corporation has an activity-based costing system with three activity cost pools–
Processing, Setting Up, and Other. Costs in the Processing 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. Data
concerning the two products and the company’s costs and activity-based costing system appear
below:
Required:
a. Calculate activity rates for each activity cost pool using activity-based costing.
b. Determine the amount of overhead cost that would be assigned to each product using activity–
based costing.
c. Determine the product margins for each product using activity-based costing.
133. Day Corporation has an activity-based costing system with three activity cost pools-
Processing, Setting Up, and Other. The company’s overhead costs, which consist of factory
utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools’
consumption of resources. Data concerning the company’s costs and activity-based costing
system appear below:
Required:
Assign overhead costs to activity cost pools using activity-based costing.
134. Yentzer Corporation has an activity-based costing system with three activity cost pools–
Processing, Setting Up, and Other. The company’s overhead costs consist of equipment
depreciation and indirect labor and are allocated to the cost pools in proportion to the activity
cost pools’ consumption of resources. Equipment depreciation totals $72,000 and indirect labor
totals $8,000. Data concerning the distribution of resource consumption across activity cost pools
appear below:
Required:
Assign overhead costs to activity cost pools using activity-based costing.
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135. Narayan Corporation has an activity-based costing system with three activity cost pools-
Machining, Setting Up, and Other. The company’s overhead costs, which consist of equipment
depreciation and indirect labor, have been allocated to the cost pools already and are provided in
the table below.
Costs in the Machining 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. Data concerning the two products and
the company’s costs appear below:
Required:
a. Calculate activity rates for each activity cost pool using activity-based costing.
b. Determine the amount of overhead cost that would be assigned to each product using activity–
based costing.
c. Determine the product margins for each product using activity-based costing.
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136. Mccance Corporation has an activity-based costing system with three activity cost pools–
Machining, Setting Up, and Other. The company’s overhead costs have already been allocated to
the cost pools and total $28,000 for the Machining cost pool, $13,800 for the Setting Up cost
pool, and $27,200 for the Other cost pool.
Costs in the Machining 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. Data concerning the two products and
the company’s costs appear below:
Required:
a. Calculate activity rates for each activity cost pool using activity-based costing.
b. Determine the amount of overhead cost that would be assigned to each product using activity–
based costing.
c. Determine the product margins for each product using activity-based costing.
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137. Irie Corporation has an activity-based costing system with three activity cost pools-
Machining, Setting Up, and Other. The company’s overhead costs have already been allocated to
the cost pools and total $18,900 for the Machining cost pool, $20,500 for the Setting Up cost
pool, and $23,600 for the Other cost pool. Costs in the Machining 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. Data concerning the two products appear below:
Required:
a. Calculate activity rates for each activity cost pool using activity-based costing.
b. Determine the amount of overhead cost that would be assigned to each product using activity–
based costing.
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138. Pressler Corporation’s activity-based costing system has three activity cost pools-
Machining, Setting Up, and Other. The company’s overhead costs, which consist of equipment
depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost
pools’ consumption of resources.
Costs in the Machining 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.
Additional data concerning the company’s products appears below:
Required:
a. Assign overhead costs to activity cost pools using activity-based costing.
b. Calculate activity rates for each activity cost pool using activity-based costing.
c. Determine the amount of overhead cost that would be assigned to each product using activity–
based costing.
d. Determine the product margins for each product using activity-based costing.
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139. Hugle Corporation’s activity-based costing system has three activity cost pools-
Machining, Setting Up, and Other. The company’s overhead costs have already been allocated to
these cost pools as follows:
Costs in the Machining 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:
Additional data concerning the company’s products appears below:
Required:
a. Calculate activity rates for each activity cost pool using activity-based costing.
b. Determine the amount of overhead cost that would be assigned to each product using activity–
based costing.
c. Determine the product margins for each product using activity-based costing.
140. Demora 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:
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:
Required:
Calculate activity rates for each activity cost pool using activity-based costing.
141. Matis Corporation’s activity-based costing system has three activity cost pools-
Fabricating, Setting Up, and Other. 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
activity rate for Fabricating is $1.08 per MH; the activity rate for Setting Up is $5.20 per batch.
The following table shows the machine-hours and number of batches associated with each of the
company’s two products:
Required:
Determine the amount of overhead cost that would be assigned to each product using activity–
based costing.