Andris Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:
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Activity Cost Pools(and Activity Measures)
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Estimated Overhead Cost
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Machine related (machine-hours).................
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$46,400
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Batch setup (setups).....................................
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$434,000
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General factory (direct labor-hours).............
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$226,500
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Expected Activity
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Activity Cost Pools
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Total
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Product X
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Product Y
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Machine related...........
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4,000
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3,000
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1,000
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Batch setup..................
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7,000
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3,000
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4,000
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General factory............
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15,000
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7,000
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8,000
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1. The activity rate for the batch setup activity cost pool is closest to:
A) $62.00
B) $101.00
C) $144.70
D) $108.50
2. Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to:
A) $353,450
B) $303,000
C) $326,500
D) $434,000