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Assume the following activity cost and drivers for the engineering and quality control cost pools for Toyota. ACTIVITY COST DRIVERS (ENGINEERING AND INSPECTION HOURS)

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Assume the following activity cost and drivers for the engineering and quality control cost pools for Toyota. ACTIVITY COST DRIVERS (ENGINEERING AND INSPECTION HOURS) Activity Cost Pool Total Cost Prius Scion Total Engineering & Quality $1,380,000 3,000 1,000 4,000 Control 1. Compute an activity rate and assign the engineering and quality control costs to the two products. Verify that the total cost assigned is $1,380,000. 2. Compute activity proportions and assign the engineering and quality control costs to the two products. Verify that the total cost assigned is $1,380,000.

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