Activity-Based Costing at Apple Inc.

• Values:
  • Total Overhead Costs: $1,000,000
  • Number of Cost Drivers: 4
  • Allocation Rate per Cost Driver: $50,000
  • Cost Driver Units: 20,000 units
• Requirements:

1. Implement an activity-based costing (ABC) system for Apple Inc.
2. Allocate overhead costs to different activities based on the cost drivers.
3. Analyze the benefits of ABC in improving cost accuracy at Apple Inc.
4. Recommend ways to enhance cost efficiency using ABC principles.