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

question 6

Essay

Benoist 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 $17, 200 for the Machining cost pool, $7, 700 for the Setting Up cost pool, and $52, 100 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 and the company's costs 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.
c.Determine the product margins for each product using activity-based costing.

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Definitions:

Apes

Large primates with no tail, including gorillas, chimpanzees, orangutans, and gibbons, closely related to humans.

Million Years

A period of time equal to one thousand years, used in discussing geological time or the age of the Earth and its species.

Primatologists

Scientists who study primates, including monkeys, apes, and humans, often focusing on behavior, biology, and evolution.

Tool

An object used to facilitate some task or activity. Although tool making involves intentional modification of the material of which it is made, tool use may involve objects either modified for some particular purpose or completely unmodified.