Answered step by step
Verified Expert Solution
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 | $110798 | # of changes | 74 |
Raw material movement | $22160 | # of movements | 148 |
Machinery operation | $480126 | # of machine hours | 36933 |
Packing | $125571 | # of orders | 2955 |
Total Indirect Costs | $738655 |
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 | 15 |
# of movements | 22 |
# of machine hours | 4735 |
# of orders | 384 |
Required: Determine the overhead 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started