Can you help me understand these problems??
Question 1. Kraska Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool Total Cost Total Activity
Assembly $460,000 39,000 machine-hours
Processing orders $33,750 950 orders
Inspection $108,242 1,320 inspection-hours
Data concerning one of the company's products, Product O11W, appear below:
Selling price per unit $95.7
Direct materials cost per unit $17.5
Direct labor cost per unit $13
Annual unit production and sales 330
Annual machine-hours 900
Annual orders 81
Annual inspection-hours 29
According to the activity-based costing system, the product margin for product O11W is (round activity rates to 2 decimal places):
a.$7,817.92
b. $4,290
c.$1,417.5
d.$5,649.07
Question 2. Dilloo Company uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:
Costs:
Manufacturing overhead $560,000
Selling and administrative expenses $142,000
Total $702,000
Distribution of resource consumption:
Activity Cost Pools
Order Customer
Size Support Other Total
Manufacturing overhead 40% 50% 10% 100%
Selling and administrative expenses 45% 35% 20% 100%
The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools.
How much cost, in total, would be allocated in the first-stage allocation to the Order Size activity cost pool?
a.$224,000
b.$280,000
c.$287,900
d. $245,700