This paper circulates around the core theme of Pressler Corporation’s activity-based costing system together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Pressler Corporation’s activity-based costing system has three activity cost pools-Machining, Setting Up, and Other. The company’s overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools’ consumption of resources. Equipment depreciation (total)$28,800 Indirect labor (total)$7,310 Distribution of Resources Consumption Across Activity Cost PoolsMachiningSetting upOther Equipment depreciation0.200.500.30 Indirect labor0.300.300.40Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products.MHsBatches Product S415,300 300 Product V68,100 1,400 Total23,400 1,700 Additional data concerning the company’s products appears below:Product S4Product V6 Sales (total)$78,900 $72,900 Direct materials (total)$21,900 $23,600 Direct labor (total)$42,600 $26,300 Required:a.Assign overhead costs to activity cost pools using activity-based costing. (Omit the “$” sign in your response.)Activity Cost Pools Machining Setting up Other Total Equipment depreciation$ $ $ $ Indirect labor Total$ $ $ $ b.Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places. Omit the “$” sign in your response.) Activity Rate Machining$ per MH Setting up$ per batchc.Determine the amount of overhead cost that would be assigned to each product using activity-based costing. (Omit the “$” sign in your response.) Product S4 Product V6 Machining$ $ Setting up Total$ $ d.Determine the product margins for each product using activity-based costing. (Omit the “$” sign in your response.) Product Margin Product S4$ Product V6$