Activity-Based Costing (ABC) at Google

• Values:

• Total Overhead Costs: $15,000,000
• Cost Driver Units: 500,000
• Number of Activities: 10
• Activity Cost Pools: Setup, Inspection, Maintenance
• Requirements:

0. Allocate overhead costs using the ABC method for Google.
1. Discuss the benefits of ABC over traditional costing methods.
2. Analyze the cost per unit using ABC compared to traditional costing.
3. Recommend improvements in cost allocation practices at Google.