Question: Please complete every component to the questions being asked. Managerial accounting (This information is used for multiple questions) McKay Corporation has an activity- based costing



Please complete every component to the questions being asked. Managerial accounting
(This information is used for multiple questions) McKay 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 the three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Equipment depreciation $51,000 Supervisory expense $3,000 Distribution of overhead costs across activity cost pools: Machining Order Filling Equipment depreciation 40% 10% Supervisory expense 20% 30% Other 50% 50% In the second stage, 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: MHs (Machining) Orders (Order Filling). Product J3 9,100 100 Product F7 900 900 Total 10,000 1,000 Finally, the costs of Machining and Order Filling are combined with the following sales and direct cost data to determine product margins. Finally, the costs of Machining and Order Filling are combined with the following sales and direct cost data to determine product margins. Sales Direct materials Direct labor Product J3 Product F7 $145,200 $90,700 $81,400 $38,600 $37,700 $42,400 How much overhead cost is allocated to the Order Filling activity cost pool under activity-based costing in the first stage of allocation (do not include the dollar sign in your answer)? Answer: MHs (Machining) Orders (Order Filling). Product J3 9,100 100 Product F7 900 900 Total 10,000 1,000 Finally, the costs of Machining and Order Filling are combined with the following sales and direct cost data to determine product margins. Sales Direct materials Direct labor Product J3 Product F7 $145,200 $90,700 $81,400 $38,600 $37,700 $42,400 The activity rate, per order, for the Order Filling activity cost pool under activity-based costing is (do not include the dollar sign in your answer): Answer: Finally, the costs of Machining and Order Filling are combined with the following sales and direct cost data to determine product margins. Sales Direct materials Direct labor Product J3 Product F7 $145,200 $90,700 $81,400 $38,600 $37,700 $42,400 What is the overhead cost assigned to Product F7 under activity-based costing? Select one: A. $27,000 B. $1,890 C. $5,400 D. $7,290 Finally, the costs of Machining and Order Filling are combined with the following sales and direct cost data to determine product margins. Product J3 Product F7 Sales $145,200 $90,700 Direct materials $81,400 $38,600 Direct labor $37,700 $42,400 What is the product margin for Product F7 under activity-based costing? Select one: A. $9,700 B. $2,410 C. $10,600 D. $2,710
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