Bones Company manufactures two products (X and Z). Overhead costs have been divided to three cost pools which use the given activity drivers.
Product # of Setups Machine Hours Packing Orders
X 36 1,950 82.5
Z 36 5,850 247.5
Cost per Pool $72,000 $165,000 $45,000
a) Find out the allocation (activity) rate per setup by using activity-based costing?
b) Find out the allocation (activity) rate per machine hours by using activity-based costing?
c) Find out the allocation (activity) rate per packing order by using activity-based costing?