TCM Company uses activity-based costing to determine products costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Activity cost pools (and activity measures) Depreciation (allocated based on machine-hours) Batch setup (allocated based on # of set ups) Estimated Overhead costs $67,500 273,700 General Factory (allocated based on direct labor hours) 204,000 Expected Activity (Allocation base) Product y Activity Cost pool Depreciation Batch setup General factory The activity rate for the general factory activity cost pool is? Total Product x 5000 m hours 4000 1000 7000 set ups 3000 4000 8000 dl hours 1000 7000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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TCM Company uses activity-based costing to determine products costs for external financial reports. The
company has provided the following data concerning its activity-based costing system:
Activity cost pools (and
activity measures)
Depreciation (allocated
based on machine-hours)
Batch setup (allocated based
on # of set ups)
General Factory (allocated
based on direct labor hours)
Estimated Overhead costs
$67,500
273,700
204,000
Expected Activity (Allocation base)
Product y
Product x
Activity Cost pool
Depreciation
Batch setup
General factory
The activity rate for the general factory activity cost pool is?
Total
5000 m hours
4000
1000
7000 set ups
3000
4000
8000 dl hours
1000
7000
Transcribed Image Text:TCM Company uses activity-based costing to determine products costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Activity cost pools (and activity measures) Depreciation (allocated based on machine-hours) Batch setup (allocated based on # of set ups) General Factory (allocated based on direct labor hours) Estimated Overhead costs $67,500 273,700 204,000 Expected Activity (Allocation base) Product y Product x Activity Cost pool Depreciation Batch setup General factory The activity rate for the general factory activity cost pool is? Total 5000 m hours 4000 1000 7000 set ups 3000 4000 8000 dl hours 1000 7000
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