(continued) Exercise 3A-1 2. Overhead is assigned to the two products as follows: Hubs: (a) (b) (a) × (b) Activity Cost Pool Activity Rate Activity ABC Cost Machine setups $180 per setup 100 setups $ 18,000 Special processing $40 per MH 5,000 MHs 200,000 General factory $34 per DLH 8,000 DLHs 272,000 Total $490,000 Sprockets: (a) (b) (a) × (b) Activity Cost Pool Activity Rate Activity ABC Cost Machine setups $180 per setup 300 setups $ 54,000 Special processing $40 per MH 0 MHs 0 General factory $34 per DLH 16,000 DLHs 544,000 Total $598,000
Exercise 3A-1 (continued) 2. Overhead is assigned to the two products as follows: Hubs: Activity Cost Pool (a) Activity Rate (b) Activity (a) × (b) ABC Cost Machine setups $180 per setup 100 setups $ 18,000 Special processing $40 per MH 5,000 MHs 200,000 General factory $34 per DLH 8,000 DLHs 272,000 Total $490,000 Sprockets: Activity Cost Pool (a) Activity Rate (b) Activity (a) × (b) ABC Cost Machine setups $180 per setup 300 setups $ 54,000 Special processing $40 per MH 0 MHs 0 General factory $34 per DLH 16,000 DLHs 544,000 Total $598,000
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