Compute the activity rates for the ABC system:

Compute the overhead cost charged to Product L73Z under the ABC system:

Compute the overhead cost charged to Product A79B under the ABC system:

Losser Corporation manufactures two products: Product L73Z and Product A79B. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products L73Z and A79B. Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine-hours $ 144,000 9,000 MUS Machine setups Number of setups $ 100,000 250 setups Product design Number of products $ 52,000 2 products Order size Direct labor-hours $ 280,000 10,000 DLHS Activity Measure Product L73Z Product A79B Machine-hours 5,000 4,000 Number of setups 100 150 Number of products 1 Direct labor-hours 3,000 7,000 Required: Compute the activity rates for the ABC system: 1 Compute the overhead cost charged to Product L73Z under the ABC system: Compute the overhead cost charged to Product A79B under the ABC system