Question: ABC Co. has an activity-based costing system with the following three activity cost pools: Processing, Setting Up, and Other. The company's overhead costs consist of
ABC Co. has an activity-based costing system with the following three activity cost pools: Processing, Setting Up, and Other. The company's overhead costs consist of factory utilities and indirect labor and are allocated to the cost pools based on the activity cost pools' proportional 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. Below are the data for the two products and the company's costs and activity-based costing system: Pactory utilities (total) 42 Indirect labor (total). $38,700 $13,400 Allocation of Resource Consumption Across Activity Cost Pools: Factory utilities Indirect labor Processing 0.20 Setting Up Other 0.50 0.30 0.30 0.30 0.40 MR Batches Product 58 3,500 700 Product P1 7,300 600 10,800 Total 1,300 Sales (total) Direct materials (total). Direct labor (total) Product S Product F1 $80,800 $ 100,500 $27,500 $ 40,300 $33,900 $ 35,300 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. Complete this question by entering your answers in the tabs below. i Saved Allocation of Resource Consumption Across Activity Cost Pools: Factory utilities Indirect labor Processing Setting Up Other 0.20 0.50 0.30 0.30 0.30 0.40 Product S8 Product F1 Total MRS 3,500 Batches 700 7,300 600 10,800 1,300 Sales (total) Direct materials (total). Direct labor (total) Product S8 Product Fl $80,800 $ 100,500 $27,500 $ 40,300 $33,900 $ 35,300 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 activi d. Determine the product margins for each product using activity-based costing. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Assign overhead costs to activity cost pools using activity-based costing. Activity Cost Pools Processing Setting Up Other Total Factory utilities Indirect labor Total Required A Required B Required C Required D Calculate activity rates for each activity cost pool using activity-I Activity Cost Pools Processing Setting up Activity Rate per MH per batch < Required A intermediate calculations to 2 decimal places.) Amount of Overhead Cost Product S8 Product F1 Product S8 Product F1 Product Margin
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