The following information is given for Greenbaum Tool Manufacturing Company:

Required:
1. Determine the ABC allocation rate for each activity (i.e., each manufacturing overhead cost pool).
2. Determine the manufacturing overhead cost for each product.
3. If drills, sanders, saws, and routers sell for $150, $175, $185, and $165, respectively, determine the gross margin for Greenbaum's four products. Assume all units aresold.

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Drills Sanders Saws Routers Units produced. Direct materials cost 2,750 $150,000 $200,000 $175,000 S100,000 $50,000 $125,000 $175,000 2,250 3,500 2,850 $75,500 Direct labor cost Mfg. Manufacturing Overhead Relevant Activities Overhead Costs $213,750 85,100 95,375 102,150 Engineering changes Number of setups Maintenance hours worked in each area of production Production volume (units produced) Engineering Quality control. Maintenance. . Manufacturing support. Activities Drills Sanders Saws Routers Engineering changes. Number of setups. 250 225 300 175 10 15 Maintenance hours worked in each area of production. 35 75 40 25 * 2,250 3,500 Production volume. 2,750 2,850