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2. ABC Corp uses an Activity Based Costing system. The accountants at ABC have identified three major manufactures Hats, Coats and Mittens. Activity Materials Processing

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2. ABC Corp uses an Activity Based Costing system. The accountants at ABC have identified three major manufactures Hats, Coats and Mittens. Activity Materials Processing Machine Maintenance Measurement Cost Driver Direct Materials Cost Maintenance Hours Weighing of Goods Hats Mittens Direct Costs for Each Product for this month are as follows: Cost Driver Direct Materials Cost Maintenance Hoursin S) Weighing of Goods 35% 30% Coats 30% 20% 28% Other 5% 24% 11% 24% 32% 26% 35% Indirect Costs for the month is as follows: Materials Processing Machine Maintenance Measurement Total $38,000 $25,000 $23,000 $86,000 Required: Compute the indirect manufacturing costs allocated to each product using activity based costing. Problem 2 Hats Coats Mittens Other Total Materials Processing Machine Maintenance Measurement Total

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