Bones Company manufactures two products (X and Z). Overhead costs have been divided into

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Bones Company manufactures two products (X and Z). Overhead costs have been divided into three cost pools that use the following 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. What is the allocation (activity) rate per setup using activity-based costing?

b. What is the allocation (activity) rate per machine hours using activity-based costing?

c. What is the allocation (activity) rate per packing order using activity-based costing?

    • 10 years ago
    Bones Company __correct w/ solutions !
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