Question

Roshannon Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts-equipment expense and indirect labor to three activity cost pools-Processing, Supervising, and Other based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment expense $52,000 Indirect labor $8,000 Distribution of Resource Consumption Across Activity Pools: Activity Cost Pools Processing Supervising Other Equipment expense 20% 30% 50% Indirect labor 40% 40% 20% In the second stage, Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Activity: Machine hours (Processing) Batches (Supervising) Product P3 8,700 600 Product G0 11,300 1,400 Total 20,000 2,000 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Sales and Direct Cost Data: Product P3 Product G0 Sales (total) $140,100 $121,500 Direct materials (total) $47,500 $56,400 Direct labor (total) $78,200 $37,700 The activity rate for the Processing activity cost pool under activity-based costing is:

Answer 1

Answer:

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Explanation: