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b. The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the
b. The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below: Activity Cost Pool Machine setups required Purchase orders issued Machine-hours required Maintenance requests issued Total Cost $ 200,000 43,500 104,000 152,500 $ 500,000 Products 800 500 3,000 860 Total Activity Product W 1,200 100 10,000 1,140 Total 2,000 600 13,000 2,000 Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year. (12 marks) b. The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below: Activity Cost Pool Machine setups required Purchase orders issued Machine-hours required Maintenance requests issued Total Cost $ 200,000 43,500 104,000 152,500 $ 500,000 Products 800 500 3,000 860 Total Activity Product W 1,200 100 10,000 1,140 Total 2,000 600 13,000 2,000 Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year. (12 marks)
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