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Activity / Estimated indirect cost Materials handling / $98,000 Packaging / $209,000 Quality assurance /. $124,500 Total indirect costs /. $431,500 Allocation base /. Estimated
Activity / Estimated indirect cost
Materials handling / $98,000
Packaging / $209,000
Quality assurance /. $124,500
Total indirect costs /. $431,500
Allocation base /. Estimated quantity of allocation base
Number of kilos / 24,500 kilos
Number of machine hours / 2786 hours
Number of samples. / 2075 samples
Actual production information included the following:
Commercial containers / Travel packs
Units produced 2200containers / 56,000 packs
Weight in kilos. 9900 / 5600
Machine hours. 1650. / 560
Number of samples 440 / 840
Commercial containers
Material handling
Packaging
Quality assurance
Total activity based costs
Number of units
Activity based cost per unit
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Auditing The Procurement Function The Iia Research Foundation Handbook Series
Authors: David O Regan, CIA, FCA
1st Edition
0894136224, 978-0894136221
