DM used DL MOH The-Bar Alamonde Salt-lick 333507 232724 129948 135876 123926 70338 466931 425868 241712 936314 782518 441998 2160830 Using this data, allocate overhead costs using ABC, split among the 3 products Assign costs to activity pools and calculate total activites for the 3 products Calculate ABC rates per activity using costs & activities from step 1 Assign overhead costs to each product using rates from step 2 Step 1 Step 2 Step 3 1 Activity The-Bar Alamonde Salt-lick Total Production volume 776000 528000 302500 1606500 Batch size (bars) 4000 3000 2500 Machine hrs per batch 13 18 19 # annual production runs (batches) 194 176 121 491 # of inspections per batch 2 3 3 Setup time (hrs) 3 4 # of product lines Research hrs 75 450 525 Budgeted costs Quality control 37500 #of inspections computer & supplies 188000 then x 20% to # of product lines then x 80% to production runs Plant & equip amort 150000 machine hours Research & develop 135000 RSD hours Indirect plant wages 193000 then x 45% to setup time then x 55% to number of prod runs 1