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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