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ACTIVITY BASED COSTING CASE- Alpine Ski Company The Alpine Ski Company manufactures 2 models of skis, the A Mountain for beginning skiers and the Avalanche

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ACTIVITY BASED COSTING CASE- Alpine Ski Company The Alpine Ski Company manufactures 2 models of skis, the A Mountain for beginning skiers and the Avalanche for the more advanced skiers. The Company basic production information is as follows Direct materials cost per unit Direct labor cost per unit Sales Expected production per S 92 51 390 4,000 units s 115 75 9,000 units For its overhead, Alpine has studied where time and effort is spent by activity: oc staff staff line workers $ 74,200 85% 20% 100,550 40% 180,000 20% 5% 50% 30% 30% 10% machine Total Overhead $484,7 Alpine has compiled the following information about its cost drivers 120 975 26 675 146 1,650 1,000 #ofi # of products REQUIRED 1. Suppose Alpine used a traditional costing system with machine

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