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Activity-Based Costing Activity Total Cost ($) Cost Driver Cost Driver Volume Machine setup 20,000 Number of setups 100 Quality control 30,000 Number of inspections 150
Activity-Based CostingĀ
Activity | Total Cost ($) | Cost Driver | Cost Driver Volume |
Machine setup | 20,000 | Number of setups | 100 |
Quality control | 30,000 | Number of inspections | 150 |
Material handling | 15,000 | Number of moves | 200 |
Tasks:
- Determine the cost per cost driver for each activity.
- Allocate the costs to a product that requires 10 setups, 15 inspections, and 20 material moves.
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