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Bones Company manufactures two products (X and Z). Overhead costs have been divided to three cost pools which use the given activity drivers.

Product              # of Setups    Machine Hours      Packing Orders

   X                     36                   1,950                  82.5

   Z                     36                   5,850                  247.5

Cost per Pool      $72,000             $165,000              $45,000

a) Determine the allocation (activity) rate per setup by using activity-based costing?

b) Find out the allocation (activity) rate per machine hours by using activity-based costing?

c) Find out the allocation (activity) rate per packing order by using activity-based costing?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M920191

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