Bones Company manufactures two products (X and Z). Overhead costs have been divided into

Bones Company manufactures two products (X and Z). Overhead costs have been divided into three cost pools that use the following activity drivers.

 

Product               # of Setups    Machine Hours     Packing Orders

   X                     36                   1,950               82.5

   Z                     36                5,850               247.5

Cost per Pool  $72,000            $165,000        $45,000

  

a. What is the allocation (activity) rate per setup using activity-based costing?

b. What is the allocation (activity) rate per machine hours using activity-based costing?

c. What is the allocation (activity) rate per packing order using activity-based costing?