Processing costs are assigned to products using machine-nours (MMS) and Supervising costs are assign

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Processing costs are assigned to products using machine-nours (MMS) and Supervising costs are assigned to products using the
Addleman Corporation has an activity-based costing system with three activity cost pools --Processing. Supervising, and Other Processing costs are assigned to products using machine-nours (MMS) 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 Product W3 Product H3 MHS Batches (Processing) (Supervising) 7,600 100 2,400 900 10,000 1,000 Total Finally, the costs of Processing and Supervising are combined with the following sales and direct cost data to determine product margins Sales and Direct Cost Data: Product W3 $ 159,500 Product H3 $154,100 Sales (total) Direct materials (total) Direct labor (total) $ 66,300 $ 77,800 $ 55,300 $ 84,100 The activity rate for the Supervising activity cost pool under activity-based costing is closest to Addleman Corporation has an activity-based costing system with three activity cost pools –Processing. Supervising, and Other in the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow Overhead costs: Equipment expense Indirect labor $73,000 $1,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Processing Supervising 0.20 0.10 0.20 0.20 Equipment expense Indirect labor Other 0.70 0.60 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 MHS Product W3 Product H3 Total Batches (Processing) (Supervising) 7,600 100 2,400 900 10,000 1,000 Finally, the costs of Processing and Supervising are combined with the following sales and direct cost data to determine product margins

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