31. Houseal Corporation has provided the following data from itsactivity-based costing system:

Activity CostPool	Total Cost		Total Activity
Assembly	$	613,250	55,000	machine-hours
Processing orders	$	46,170	1,500	orders
Inspection	$	146,110	1,900	inspection-hours

Data concerning one of the company's products, Product W58B,appear below:

Selling price per unit	$	113.70
Direct materials cost perunit	$	48.14
Direct labor cost per unit	$	11.62
Annual unit production andsales		360
Annual machine-hours		1,040
Annual orders		60
Annual inspection-hours		30

According to the activity-based costing system, the productmargin for product W58B is:

2. Doede Corporation uses activity-based costing to computeproduct margins. In the first stage, the activity-based costingsystem allocates two overhead accounts--equipment depreciation andsupervisory expense--to three activity cost pools--Machining, OrderFilling, and Other--based on resource consumption. Data to performthese allocations appear below:

Overhead costs:
Equipment depreciation	$	92,000
Supervisory expense	$	4,000

Distribution of Resource Consumption Across Activity CostPools:

	Activity Cost Pools
	Machining	Order Filling		Other
Equipment depreciation	0.60	0.20		0.20
Supervisory expense	0.30	0.20		0.50

In the second stage, Machining costs are assigned to productsusing machine-hours (MHs) and Order Filling costs are assigned toproducts using the number of orders. The costs in the Otheractivity cost pool are not assigned to products.

Activity:

	MHs(Machining)	Orders (OrderFilling)
Product W1	4,200	800
Product M0	15,800	200
Total	20,000	1,000

Finally, sales and direct cost data are combined with Machiningand Order Filling costs to determine product margins.

Sales and Direct Cost Data:

	Product W1		Product M0
Sales (total)	$	236,500	$	262,000
Direct materials (total)	$	90,900	$	123,900
Direct labor (total)	$	110,400	$	76,100

The activity rate for the Machining activity cost pool underactivity-based costing is closest to:

3. In time-based activity-based costing, the practicalcapacity percentage is an estimate of the company’s capacity inrelation to its closest competitor. true or false