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II. Activity Based-Costing (20 points total) Honda Corporation is a diversified manufacturer which builds many...

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II. Activity Based-Costing (20 points total) Honda Corporation is a diversified manufacturer which builds many types of engine-equipped transportation vehicles. The Electronic Bicycle Division (EBD) produces two types of engine- equipped bicycles. The EBD's activity-based costing system contains the following six activity cost pools and activity rates. Activity Cost Pool Activity Rates Supporting direct labor $12 per direct labor-hour Machine processing $8 per machine hour Machine set-ups $100 per set up Production orders $180 per order Shipments $28 per shipment Product sustaining $1,680 per product Activity data have been supplied for the following products: Total Expected Activity American Model European Model Number of units produced per year 200 Direct Labor Hours 40 60 Machine-hours 120 180 Machine set-ups 2 5 Production Orders 4 4 Shipments 5 10 Product sustaining Required: How much total overhead cost would be assigned to the American and European models using the activity-based costing systems? 100 S PhotoGrid

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