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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) Find out 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?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M921204

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