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Ace Company produces two products (#1 and #2); has two additional cost objects relating to customer service and warranty support (A and B); and engages
Ace Company produces two products (#1 and #2); has two additional cost objects relating to customer service and warranty support (A and B); and engages in three activities related to design, production, and testing (X, Y, and Z). Follow the steps outlined below to apply activity-based costing to Ace Company. If any red boxes remain, you have not correctly completed the process. ALLOCATE COSTS: For the following four cost categories (indirect materials, maintenance, other, and SG&A), make assumptions about the percentages to be assigned to each of the activities (X, Y,Z, or unallocated). Use the available pick lists from within each boxed area and enter your selection. Your total allocation must equal 100% for each row. Activity Cost Pools X Y Z Unallocated Total Indirect materials 0.00 0.00 0.00 0.00 0.00 Maintenance 0.00 0.00 0.00 0.00 0.00 Other 0.00 0.00 0.00 0.00 0.00 SG&A 0.00 0.00 0.00 0.00 0.00
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