Posted: April 21st, 2016

Determine the total overhead cost that would be assigned to each of the products listed above in the activity based costing system:

DS Company has identified the following cost pools and activity rates Activity Cost Pool Activity Rate Supporting direct labor $4 per direct labor hour Machine processing $3 per machine hour Machine setups $30 per setup Production orders per order Shipments $98 per shipment Product sustaining 0 per product Activity data have been supplied for the following products: Total Expected Activity D130 S150 Direct labor hours 2,500 300 Machine hours 4,300 250 Machine Setups 7 2 Production orders 3 2 Shipments 9 4 Products sustaining 2 1 Determine the total overhead cost that would be assigned to each of the products listed above in the activity based costing system: show computations and details a. D130 b. S150