Immen Corporation manufactures two products: Product B82O and Product P99Y. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products B82O and P99Y.
Activity Cost Pool Activity Measure Total Cost Total Activity
Machining Machine-hours $ 330,000 15,000 MHs
Machine setups Number of setups $ 300,000 500 setups
Product design Number of products $ 46,000 2 products
Order size Direct labor-hours $ 330,000 10,000 DLHs
Activity Measure Product B82O Product P99Y
Machine-hours 7,000 8,000
Number of setups 200 300
Number of products 1 1
Direct labor-hour 3,000 7,000
Required:
1. Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product P99Y?

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?