Please only answer if you are going to answer all the questions!

1. Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts--equipment depreciation and supervisory expense--to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below:

Overhead costs:
Equipment depreciation	$ 95,000
Supervisory expense	$ 10,300

Distribution of Resource Consumption Across Activity Cost Pools:

	Activity Cost Pools
	Machining	Order Filling	Other
Equipment depreciation	0.60	0.30	0.10
Supervisory expense	0.60	0.20	0.20

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:

	MHs (Machining)	Orders (Order Filling)
Product W1	6,180	197
Product M0	14,900	927
Total	21,080	1,124

Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.

Sales and Direct Cost Data:

	Product W1	Product M0
Sales (total)	$ 84,300	$ 65,500
Direct materials (total)	$ 33,600	$ 18,500
Direct labor (total)	$ 24,000	$ 32,100

What is the overhead cost assigned to Product W1 under activity-based costing? (Round your intermediate calculations to 2 decimal places and your final answer to nearest whole dollar amount.)

Multiple Choice

• $23,896

• $63,180

• $5,356

• $18,540

2. Leaper Corporation uses an activity-based costing system with the following three activity cost pools:

Activity Cost Pool	Total Activity
Fabrication	35,000	machine-hours
Order processing	250	orders
Other	Not applicable

The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs.

The company has provided the following data concerning its costs:

Wages and salaries	$ 530,000
Depreciation	225,000
Occupancy	245,000
Total	$ 1,000,000

The distribution of resource consumption across activity cost pools is given below:

	Activity Cost Pools			Total
	Fabrication	Order Processing	Other
Wages and salaries	35%	30%	35%	100%
Depreciation	15%	45%	40%	100%
Occupancy	35%	30%	35%	100%

The activity rate for the Order Processing activity cost pool is closest to:

Multiple Choice

• $2,665 per order

• $1,335 per order

• $930 per order

• $1,041 per order

• $9.17 per batch