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A company identified the following partial list of activities, costs, and activity drivers expected for the next year: Activity Expected Costs Cost Driver Extrusion costs
A company identified the following partial list of activities, costs, and activity drivers expected for the next year:
Activity | Expected Costs | Cost Driver |
---|---|---|
Extrusion costs | $83,600 | Number batches made |
Handling costs | $8,800 | Number of orders filled |
Packaging costs | $40,500 | Number of units made |
Description | Product A | Product B |
---|---|---|
Production volume | 750,000 units | 600,000 units |
Batches made | 200batches | 750 batches |
Orders filled | 75 orders | 200 orders |
How much overhead in total will be assigned to the Product A line using activity-based costing?
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