Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC uses an ABC system to allocate its indirect costs. ABC has determined that its activity cost pools and cost drivers are as follows: ACTIVITY

ABC uses an ABC system to allocate its indirect costs. ABC has determined that its activity cost pools and cost drivers are as follows:

ACTIVITY COST POOLS

ESTIMATED COST

COST DRIVERS ESTIMATED ACTIVITY FOR COST DRIVERS
Machine change $110,798 # of changes 74
Movement of raw material $22,160 # of movements 148
Machinery operation $480,126 # of machine hours 36,933
Packaging $125,571 # of orders 2,955
Total Indirect Costs $738,655

The product BBB, manufactured by ABC, consumed the following activities during the period to produce 500 units:

COST DRIVERS ACTIVITY USED
# of changes 15
# of movements 22
# of machine hours 4735
# of orders 384

Required: Determine the indirect costs assigned to each manufactured unit of product BBB (Round to the nearest unit, do not use decimals).

Answer__________________________

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Unclaimed Property A Reporting Process And Audit Survival Guide

Authors: Tracey L. Reid

1st Edition

0470278242, 978-0470278246

More Books

Students also viewed these Accounting questions

Question

Design a training session to maximize learning. page 296

Answered: 1 week ago

Question

Design a cross-cultural preparation program. page 300

Answered: 1 week ago