The total factory overhead for norton company is budgeted for the year at $300,000, divided into three activities: assembly, $200,000; setup, $50,000; and materials handling, $150,000. norton manufactures two products: product a and product b. the activity-based usage quantities for each product by each activity are estimated as follows:
assembly setup materials handling
product a 2,000 dlh 8,000 dlh 5 setups
product b 10,000 dlh 24,000 dlh 15 setups
total activity-base usage 12,000 dlh 32,000 dlh 20 setups
determine the activity rate for the assembly activity.
a. $15.00
b. $16.67
c. $1.67
d. $25.00

Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.