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: COST

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

COST GROUPS

(COST POOLS)

ESTIMATED COST

CAUSES OF COSTS

(COST DRIVERS)

ESTIMATED ACTIVITY FOR COST CAUSES
Change of machines $131991 # of changes 88
Raw material movement $26398 # of movements 176
Machinery operation $571960 # of machine hours 43997
Packing $149589 # of orders 3520
Total Indirect Costs $879938

Product BBB, manufactured by ABC, consumed the following activities during the period to produce 500 units

CAUSES OF COSTS (COST DRIVERS) USED ACTIVITY
# of changes 18
# of movements 26
# of machine hours 5640
# of orders 458

Required: Determine the total indirect costs assigned to the batch of 500 manufactured units 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

Financial Holding Company Audit Compliance And Risk Management

Authors: Anthony Ludovic Assassa

1st Edition

6206122727, 978-6206122722

More Books

Students also viewed these Accounting questions