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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).
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