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PROBLEM 3: XYZ Corporation uses activity-based costing to compute product margins. Overhead costs ha

PROBLEM 3: XYZ Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated

PROBLEM 3: XYZ Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Machining, Order Filling, and Other. The costs in those activity cost pools appear below Overhead costs Machining Order Filling Other S 20,900 S 22,900 29,200 Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned products using the number of orders. The costs in the Other activity cost pool are not assigned to products Activity data appear below to Orders (Order Filling) MHs (Machining) 9,600 Product U6 600 Product Z8 400 400 Finally, sales and direct cost data needed to compute the product margins is given below Product U6 Product Z8 S 185,100 $ 178,100 Sales (total) Direct materials (total) Direct labor (total) 56,600 98,600 S 83,400 63,700 Show your work for each part of the question below: a. What is the activity rate for machining under ABC accounting? $ b. What is the activity rate for order filling under ABC accounting? $ c. What is the overhead cost assigned to Product U6 under activity-based costing? a) $36,500 b) $20,064 c) S33,804 d) $13,740 d. What is the product margin for Product U6 under activity-based costing? Show your work by preparing management report for Product U6. a

Apr 04 2020 View more View Less

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