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2. Activity Based Costing Exercise XYZ Company makes two products, Product A & Product B. Calculate the cost per Unit and the Total Costs Allocated
2. Activity Based Costing Exercise XYZ Company makes two products, Product A & Product B. Calculate the cost per Unit and the Total Costs Allocated to each product using the following information & methodologies: Estimated Fabrication Assembly Units DLH DLH Set Ups Quality Control Inspections 120 Engineering Change Orders Products Product 1,000 15 50 20 80 Product 1,000 1. Single Plant Overhead Allocation Method: - allocate $3,000,000 in plant-wide overhead 2. Multiple Department Overhead Allocation Method: -allocate $2,300,000 to the Fabrication Department - allocate $700,000 to the Assembly Department 3. Activity-Based Overhead Allocation Method: -allocate $1,500,000 to the Fabrication Department -allocate $500,000 to the Assembly Department -allocate $300,000 to Set Up Costs - allocate $400,000 to Quality Control - allocate $300,000 to Engineering Change Orders
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