Lakey Corporation Has an Activity-Based Costing System with Three Activity

question 118

Essay

Lakey Corporation has an activity-based costing system with three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs have already been allocated to the cost pools and total $11,000 for the Machining cost pool, $26,200 for the Setting Up cost pool, and $9,800 for the Other cost pool. Costs in the Machining 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. Data concerning the two products appear below:
Required:
a. Calculate activity rates for each activity cost pool using activity-based costing.
b. Determine the amount of overhead cost that would be assigned to each product using activity-based costing.

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Definitions:

X Chromosome

is one of the two sex chromosomes, with females typically having two X chromosomes and males having one X and one Y chromosome.

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, marking the beginning of human development.

Spermarche

A primary sex characteristic in males; a male’s first production of mature sperm, which signals the ability to reproduce sexually.

Andropause

Andropause describes the gradual decline in testosterone levels and its associated effects on men, often compared to menopause in women.