H&Y Company uses four activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead costs are as follows:

The above activities are used by the two different products as follows:

Instructions
(a) Calculate how much of the material handling cost will be allocated to PC-21.
(b) Determine the ABC allocation rate for Purchase orders.
(c) Calculate how much of the Set-up costs will be allocated to WX-34.
(d) Calculate how much of the total activity costs will be allocated to PC-21.

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Total Costs 200,000 210,000 300,000 480,000 $1,190,000 Volume of Cost Driver Activity Material handling Purchase orders Set-up hours Machining Total costs 100,000 parts 35 orders 150 hours 3,000 machine hours PC-21 75,000 parts Material handling Purchase orders per product15 Set-up hours Number of machine hours WX-34 25,000 parts 20 50 hours 1,000 machine hours 100 hours 2,000 machine hours