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Finance

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?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M921204

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