Sukhu Corporation's Activity-Based Costing System Has Three Activity Cost Pools--Fabricating

question 81

Essay

Sukhu Corporation's activity-based costing system has three activity cost pools--Fabricating, Setting Up, and Other. The company's overhead costs have already been allocated to these cost pools as follows:
Costs in the Fabricating 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. The following table shows the machine-hours and number of batches associated with each of the company's two products:
Required:Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.)

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Definitions:

Global Commodity Chain

A worldwide network of labor and production processes whose end result is a finished commodity.

Production Processes

The series of actions, methods, and operations involved in the manufacturing of goods, including the transformation of raw materials into finished products.

Finished Commodity

A product that has completed all stages of production and is ready for consumers to purchase.

Developing Societies

Countries or regions experiencing economic growth and undergoing transitions in social, economic, and political structures.