Hill Manufacturing Uses an Activity-Based Costing System

Essay

Hill Manufacturing uses an activity-based costing system. The company produces Model A and Model B. Information concerning the two products is as follows: Required:
a.
Classify the following overhead activities as unit-level activities, batch-level activities, or product-level activities:
Power
Engineering
Setups
b.
Calculate the following:
A cost pool rate for power
A cost pool rate for setups
A cost pool rate for engineering
c.
Calculate the following:
Power costs assigned to Model B
Setups costs assigned to Model A
Engineering costs assigned to Model A