RECOMMENDED!!Foster Company manufactures two products
Foster Company manufactures two products (XX and YY). The overhead costs have been divided into four cost pools that use the following Drivers:Product Number of orders Number of setups Number of labor transactions Labor hoursXX 60 20 50 2000YY 20 80 70 500Cost per pool $16000 $13,000 $2,400 $20,000Required:a. Compute the allocation rates for each of the activity drivers listed.b. What are the total costs assigned to products XX and YY using activity-based costing?c. Compute the overhead rate using labor hours under the functional-based costing system.d. What are the total costs assigned to products XX and YY using the functional based costing system overhead rate calculated in part (c).
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