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Business, 15.07.2020 01:01 breannaking9734

Howell 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. Equipment depreciation (total) $ 29,400
Indirect labor (total) $ 7,900
Distribution of Resource Consumption Across Activity Cost Pools
Machining Setting Up Other
Equipment depreciation 0.20 0.40 0.40
Indirect labor 0.20 0.50 0.30
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.
MHs Batches
Product S4 10,500 1,500
Product C0 5,100 1,900
Total 15,600 3,400
Additional data concerning the company's products appears below:.
Product S4 Product C0
Sales (total) $ 82,400 $ 62,700
Direct materials (total) $ 29,700 $ 20,800
Direct labor (total) $ 39,700 $ 25,100
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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