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Activity-based product costing The controller identified the amount of factory overhead required by the critical activities of the organization as follows: The activity bases identified
Activity-based product costing The controller identified the amount of factory overhead required by the critical activities of the organization as follows: The activity bases identified for each activity are as follows: The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows: Each product requires 40 minutes per unit of machine time. Each product requires 40 minutes per unit of machine time. Required: If required, round all per unit amounts to the nearest cent. 1 Determine the artivitu rate for earh artivity 2. Determine the total and per-unit activity cost for all three products. 3. Why aren't the activity unit costs equal across all three products since they require the same machine time per unit? The unit costs are different because the products consume many activities in ratios different from the Feedback Check My Work 1. Calculate Activity Rate for each activity: Budgeted Activity Cost Total Activity-Base Usage = Activity Rate 2. Calculate Activity Cost for each product
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