Question

Vieth Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing 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 and activity-based costing system appear below:

Activity Cost Pools	Costs
Factory Utilities	$78,000
Indirect labor	$2,000

Distribution of Resource Consumption across Activity Cost Pools

	Processing	Setting Up	Other
Factory Utilities	.50	.30	.20
Indirect labor	.50	.20	.30

	Machine hours	Batches
Product H9	5,000	300
Product V2	15,000	700
Totals	20,000	1,000

  Other cost data for the products is as follows:

	H9	V2
Sales	$229,700	$226,000
Direct materials	$115,500	$114,900
Direct labor	$83,400	$56,400

Assign overhead costs (Factory utilities and Indirect labor) to activity cost pools (Processing and Setting Up) using a first stage allocation step.(Input amounts using whole dollars, no decimals or dollar signs and commas if needed.)

	Processing	Setup	Other	Total
Factory Utilities
Indirect labor
Totals

Calculate the activity rates for each activity (Round to two decimal places and no dollar signs):

Processing

Setup

Assign the overhead costs to each product:(Input amounts using whole dollars, no decimals or dollar signs and commas if needed.)

Product	Processing	Setup	Total
H9
V2

Calculate the product margin for each product (Sales less product costs):(Input amounts using whole dollars, no decimals or dollar signs and commas if needed.)

H9
V2

Answer 1