Red Stone Manufacturing,a Manufacturer of a Variety of Products,uses an Activity-Based

Essay

Red Stone Manufacturing,a manufacturer of a variety of products,uses an activity-based costing system.Information from its system for the year for all products follows:
$$\begin{array} { | l | l | r | l | } \hline { \text { Artivity cast poul } } & { \text { Tatal cast } } & &{ \text { Tatal artivity } } \\\hline \text { Assembly } & \$ 552,000 & 30,000 & \text { machine-hours } \\\hline \text { Inspection } & \$ 324,700 & 8,500 & \text { inspection-hours } \\\hline \text { Packaging } & \$ 49,450 & 2,300 & \text { arders } \\\hline\end{array}$$ Red Stone Manufacturing makeS400 of its product B34 a year,which requires a total of 52 machine hours,15 inspection hours,and 20 orders.Product B34 requires $75.50 in direct materials per unit and $68.80 in direct labor per unit.Product B34 sells for $180 per unit.
Required:
a.Calculate the cost pool activity rate for each of the three activities.
b.How much manufacturing overhead would be allocated to Product B34 in total?
c.What is the product margin in total for Product B34?