Fabricating $6,800 Setting up Other $38,600 $20,600 Costs in the Fabricating 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. The following table shows the machine hours and the number of batches associated with each of the company's two products: MHs Batches Product V1 9,000 200 Product V7 1,000 800 10,000 1,000 Total Required: Calculate activity rates for each activity cost pool using activity-based costing.
Fabricating $6,800 Setting up Other $38,600 $20,600 Costs in the Fabricating 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. The following table shows the machine hours and the number of batches associated with each of the company's two products: MHs Batches Product V1 9,000 200 Product V7 1,000 800 10,000 1,000 Total Required: Calculate activity rates for each activity cost pool using activity-based costing.
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...
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