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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:

  1. Determine the cost per cost driver for each activity.
  2. Allocate the costs to a product that requires 10 setups, 15 inspections, and 20 material moves.
Calculate the total cost allocated to the product.


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