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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: 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).
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