The ABC team at Sky Enterprises, a company that uses satellites for surveillance, has pieced together the
Question:
The ABC team at Sky Enterprises, a company that uses satellites for surveillance, has pieced together the following data for its satellite surveillance service:
Unit-level actual activity (hours of surveillance) is unknown; predetermined cost-driver rate is
$10,000 per unit; total unit cost assigned to the product in November is $20,000,000.
Batch-level activity is 4 (satellite launches); cost of batches assigned to the product is $6,000,000
(predetermined cost driver rate is unknown).
Product-level activity 1s 1 product; predetermined cost-driver rate is $1,000,000.
Customer-level activity is 100 customers; predetermined cost-driver rate is $50,000 per customer.
Facility-level activity is 50,000 square feet; predetermined cost-driver rate is $500 per square foot.
Required Prepare a table with the following table column headings: Activity/Resource, Predetermined Cost-
Driver Rate, Actual Activity Volume in November, and Cost of Surveillance in November. All activity levels are for the month of November.
Step by Step Answer:
Cost Management Strategies For Business Decisions
ISBN: 12
4th Edition
Authors: Ronald Hilton, Michael Maher, Frank Selto