Tusker Corporation Manufactures Two Products (S and T) Required:
A

question 140

Essay

Tusker Corporation manufactures two products (S and T). The overhead costs have been divided into four cost pools that use the following activity drivers:
$\begin{array}{lcccc}&\text { Number of } & \text { Number of }& \text { Machine }& \text { Packing }\\\text { Product } & \text { Setups } & \text { Orders } & \text { Hours }&\text { Orders } \\\mathrm{S} & 20 & 35 & 1,000 & 75 \\\mathrm{~T} & 5 & 70 & 1,500 & 125\\\text { Cost per pool } & \$ 15,000 & \$ 8,400 & \$ 120,000 & \$ 40,000\end{array}$
Required:
a.Compute the allocation rates for each of the activity drivers listed.
b.Allocate the overhead costs to Products S and T using activity-based costing.
c.Compute the overhead rate using machine hours under the functional-based costing system.
d.Allocate the overhead costs to Products S and T using the functional-based costing system overhead rate calculated in part (c).

---

Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.