Kentaro Corporation manufactures Digital Video Recorders (DVRs) in its Tokyo plant. The following costs are budgeted for January. (Yen is the Japanese monetary unit.)
Raw materials and components ................................................................. 2,950,000 yen
Insurance, plant ................................................................................................... 600,000
Electricity, machinery.......................................................................................... 120,000
Electricity, light ..................................................................................................... 60,000
Engineering design .............................................................................................. 610,000
Depreciation, plant .............................................................................................. 700,000
Depreciation, machinery .................................................................................. 1,400,000
Custodial wages, plant .......................................................................................... 40,000
Equipment maintenance, wages .......................................................................... 150,000
Equipment maintenance, parts .............................................................................. 30,000
Setup wages .......................................................................................................... 40,000
Inspection of finished goods ................................................................................ 30,000
Property taxes ..................................................................................................... 120,000
Natural gas, heating .............................................................................................. 30,000
Required:
Divide these costs into activity cost pools, and identify a cost driver for assigning each pool of costs to products. Calculate the total cost in each activity cost pool.