RAFA Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other....

 

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RAFA Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The company's overhead costs, which consist offactory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption ofresources. 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 co sting system appear below: Factory utilities (total) Indirect labor (total) $ 34,800 $ 12,400 Distribution of Resource Consumption Across Activity Cost Pools Factory utilities Indirect labor Processing Setting Up Other 0.50 0.50 0.20 0.40 0.30 0.10 Requir ed: Assign overhead costs to the three activity cost pools using activity-based costing. RAFA Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The company's overhead costs, which consist offactory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption ofresources. 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 co sting system appear below: Factory utilities (total) Indirect labor (total) $ 34,800 $ 12,400 Distribution of Resource Consumption Across Activity Cost Pools Factory utilities Indirect labor Processing Setting Up Other 0.50 0.50 0.20 0.40 0.30 0.10 Requir ed: Assign overhead costs to the three activity cost pools using activity-based costing.

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