Question: ABC 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
ABC 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). $27,000 Indirect labor (total)... Distribution of Resource Consumption Across Activity Cost Pools Equipment depreciation. 0.40 $7,000 Machining Setting Up Other 0.30 0.30 0.30 0.50 Indirect labor 0.20 Costs 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. in the Machining cost pool are assigned to products based on machine-hours (MHs) and MHs Batches Product S... 8,100 400 1.600 10,000 2,000 Prouct Ve 10.000 200 Total Additional data concerning the company's products appears below: Product S4 $71,400 Sales (total Direct materials (total).... $21,900 Direct labor (totall.33,700 Product V6 $57,600 $19,900 $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 based costing d. Determine the product margins for each product using activity-based costing. the amount of overhead cost that would be assigned to each product usingactivity
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