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Can you provide the answer with this question? Company A uses activity based costing in its manufacturing operations. The company produces two products: Product 1
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Company A uses activity based costing in its manufacturing operations. The company produces two products: Product 1 and Product 2. The annual production and sales of Product 1 is 300 units and of Product 2 is 1,000 units. There are three manufacturing activity cost pools: order processing, driven by number of orders processed; machining, driven by machine hours logged; and inspection, driven by inspection hours logged. The estimated costs and activity levels are as follows:
Activity Cost Pool | Estimated Cost | Product 1 | Product 2 |
Order processing | $7,356 | 200 orders | 200 orders |
Machining | $30,555 | 1,400 m hrs | 700 m hrs |
Inspection | $16,169 | 90 I hrs | 300 I hrs |
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