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 POOLS ESTIMATED COST

COST DRIVERS

ESTIMATED ACTIVITY FOR COST DRIVERS
Machine Change $116988 Number of changes 78
Movement of raw material $23398 Number of movements 156
Machinery operation $506949 Number of machine hours 38996
Packaging $132587 Number of orders 3120
Total Indirect Costs $779922

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

COST DRIVERS ACTIVITY USED
Number of changes 16
Number of movements 23
Number of machine hours 4999
Number of orders 406

Required: Determine the total indirect costs allocated 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

Managerial Accounting Ba 213 At Central Oregon Community College

Authors: Albrecht

1st Edition

1111523622, 978-1111523626

More Books

Students also viewed these Accounting questions