Question: Kobe Enterprises has an activity-based costing system with three activity cost pools--Processing. Setting Up, and Other. Costs in the Processing cost pool are assigned to
Kobe Enterprises has an activity-based costing system with three activity cost pools--Processing. Setting Up, and Other. 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. Data concerning the two products and the company's costs and activity-based costing system appear below. Activity Cost Pools Processing Setting Up Other $ 58,000 $ 16,000 $29,600 Machine-Hours Batches Product E10 9,100 750 Product G15 13,100 1,350 Total 22,200 2,100 Sales (total) Direct materials (total) Direct labor (total) Product E10 $ 220,800 Product G15 $306,600 $146,300 $ 73,700 $106,510 $ 97,300 Sales (total) Direct materials (total) Direct labor (total) Product E10 $ 220,800 $ 73,700 $ 106,510. Required: Answer the 3 questions below. Product G15 $ 306,600 $ 146,300 $ 97,300 Label 3 rows in the answer area a., b., c, and answer the 3 questions. Bold your final answer but show all your work. (Round each of your calculations to 2 decimal places.) a. Calculate activity rates for each activity cost pool that needs to be assigned to products using activity-based costing. b. Determine the total for the amount of overhead cost that would be assigned to product E10 using activity-based costing. c. Determine the product margin for product E10 using activity-based costing. Label 3 lines in the answer area with a., b., c. and answer the 3 questions. Bold your final answer but show all your work
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