ACC 560 MART Great Stories /acc560mart.com ACC 560 MART Great Stories /acc560mart.com | Page 20

Instructions
a. Compute the activity-based overhead rates for each of the
three cost pools, and determine the overhead cost assigned to
each product line.
b. Compute the operating income for each product line, using
the activity-based overhead rates.
c. What do you believe Peggy Kingman should do?
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ACC 560 Week 4 Homework Chapter 5 and Chapter 6 (E5-6,
E5-9, E5-13, E6-2, E6-7, E6-12)
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ACC 560 Week 4 Homework Chapter 5 and Chapter 6 (E5-6,
E5-9, E5-13, E6-2, E6-7, E6-12)
Chapter 5: Cost-Volume-Profit and Chapter 6: CVP Analysis
Additional Issues
ACC 560 Week 4 Chapter 5: Exercises 6, 9, and 13; Problem 2;
Chapter 6: Exercises 2, 7, and 12;
E5-6
PCB Corporation manufactures a single product. Monthly
production costs incurred in the manufacturing process are
shown below for the production of 3,000 units. The utilities and