Question: Activity Activity Estimated Expected Cost Pool Cost Driver Total MOH Activity Machine hrs Machining $200,000 10,000 Mhrs (Mhrs) Number of Setups setups $100,000 200 setups

 Activity Activity Estimated Expected Cost Pool Cost Driver Total MOH Activity

Activity Activity Estimated Expected Cost Pool Cost Driver Total MOH Activity Machine hrs Machining $200,000 10,000 Mhrs (Mhrs) Number of Setups setups $100,000 200 setups Product Number of $84,000 2 products Design products General Direct Labor $300,000 12,000 Dihs Factory Hours (Dih) Product M Product N 7,000 3,000 Activity Cost Driver Machine hrs (Mhrs) Number of setups Number of products Direct labor hours 50 150 1 1 8,000 4,000 4. What is the activity rate for the Machine Setups activity cost pool? 5. What is the activity rate for the Product Design activity cost pool? 6. What is the activity rate for the General Factory activity cost pool? 7. Which of the four activities is a batch-level activity? Why? 8. Which of the four activities is a product-level activity? Why? 9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product M? 10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product N

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