Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Meester Corporation has an activity-based costing system with three activity cost pools--Machining, Order Filling, and Other. In the first stage allocations costs in the two overhead accounts, equipment depreciation and supervisory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs Equipment depreciation $86,200 Supervisory expense $ 8,200 Distribution of Resource Consumption Across Activity Cost Pools Activity Cost Pools Machining Order Filling Equipment depreciation Supervisory expense 0.60 0.60 0.20 0.10 Other 0.20 0.30 Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: MHS Orders (Order (Machining) Filling) 1,950 9,670 Product MO 680 1,850 Product H2 Multiple Choice $714 per order $4.57 per order $4.14 per order $71.40 per order