Activity-Based Costing at Johnson & Johnson

Values:

Activity	Units Produced	Overhead Cost
Activity 1	70,000 units	$3,500,000
Activity 2	90,000 units	$6,000,000

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.
4. Discuss the advantages of using ABC in Johnson & Johnson.