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(20 pts) A company makes two cell phones, the SLIM and the RAZ. Assume that there are three activities that determine indirect costs and have
(20 pts) A company makes two cell phones, the SLIM and the RAZ. Assume that there are three activities that determine indirect costs and have the following cost drivers: 4. Cost Driver Activity Materials handling Direct-material cost Engineering Power Engineering change notices Kilowatt-hours The cost driver activity for a recent month is as follows: SLIMRAZ Direct material cost $25,000 $50,000 Kilowatt-hours 4 50,000 150,000 Engineering change notices 2 Indirect production costs for the month were: Materials handling $9,000 Engineering Power TOTAL 14,000 16,000 $39,000 the indicect preduction cost allocated to each product with the ABC system
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