Zumbrunnen corporation uses activity-based costing to compute product margins.
overhead costs have already been allocated to the company's three activity cost pools - processing, supervising and other. the costs in those activity cost pools appear below:
processing $3,800
supervising $23,800
other $10,000
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 appear below:
mhs (processing) batches (supervising)
product m0 9,700 50
product m5 3,00 500
total 10,000 1,000
finally, sales and direct cost data are combined with processing and supervising costs to determine product margins.
product m0 product m5
sales (total) $ 83,100 $ 96,400
direct materials (total) $ 29,800 $ 32,700
direct labor (total) $ 29,100 $ 43,000
(a) what is the overhead cost assigned to product m5 under activity-based costing? (b) what is the overhead cost assigned to product m5 under activity-based costing?