Acitivty-Based Costing

Production and Cost Information:

Product A requires 6 hours of labor per unit and Product B requires 10 hours. The potential drivers for the indirect costs remain the same as shown on page 2 of the illustration of Activity-based Costing.

Total marketing costs$42,500

Total engineering costs$95,000

Total setup costs$68,750

Labor cost per hour$30

ActivityProduct AProduct B Total

TV ads 3 2 5

Engineering Cycles 15 4 19

Batched Runs 8 3 11

Total budgeted indirect costs = $

how do i work this out?