Question

ctivity-based costing its activity-based The following data have been provided by Leader Corporation from aunting sum: Factory supervision Indirect fetary labor 460,000 $ 220,000 Distribution of Resource Consumption across Activity Cost Pools: Activity Cost Pools Assembly Setting Up Other Total Factopupervision 10% 100% Indirect factory labor 60 20% 20% 100% 35% 55% How much factory supervision and indirect factory labor cost would be allocated in the first stage allocation to the other activity cost pool? A) $220,000 B) 590,000 C) SO D) $460,000 Question 2: (1.marks) Data concerning three of XYZ Corporation's activity cost pools appear below: Activity Cost Pool Assembling products Designing products Setting up batches Total Cost $ 150.300 $ 1,177,535 $ 14,400 Total Activity 8,350 assembly hours 7,597 product design hours 600batch set-up Required: Compute the activity rates for each of the three cost pools. Question 3: (2 marks) Best Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products Activity Cost Pool Assembling products Processing Customer orders Setting up batches $ Activity Rate 8.90 per assembly hour 31.23 per customer order 43.72 per batch Duta for one of the company's products follow: Page 2 of 3

Answer 1

5)					other
	Factory supervision		460000*10%=		46000
	Indirect factory labor		220000*20%=		44000
					90000
	option B
	$90,000
				total	Total	Activity
6)	Activity cost pool			cost	Activity	rate
	Assembling products			150,300	8,350	18	per assembly hour
	Designing products			1,177,535	7,597	155	per product design hours
	Setting up batches			14,400	600	24	per batch setup