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Activity-Based Costing in Manufacturing at Nike Inc. Requirements: Identify cost drivers for Nike Inc.'s footwear and apparel manufacturing processes. Implement an ABC system to allocate

Activity-Based Costing in Manufacturing at Nike Inc.

Requirements:

  1. Identify cost drivers for Nike Inc.'s footwear and apparel manufacturing processes.
  2. Implement an ABC system to allocate overhead costs to different product lines based on production runs and machine hours.

Product Line

Production Runs

Machine Hours

Footwear

50

10,000

Apparel

70

8,000

  1. Calculate the total cost per unit for each product line using ABC allocations.
  2. Analyze product profitability and recommend strategies to improve cost efficiency and pricing.

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