Activity-Based Costing at Google

Values:

• Total Overhead: $2,000,000
• Activity 1: 10,000 units, $500,000
• Activity 2: 20,000 units, $1,500,000

Requirements:

1. Allocate the overhead costs using activity-based costing.
2. Determine the cost per unit for each activity.
3. Compare these costs to traditional costing methods.