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Handy Fabricators is exploring adoption of an activity based costing system. In a first step towards implementation the company identified four cost pools-fabricating, finishing, quality

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Handy Fabricators is exploring adoption of an activity based costing system. In a first step towards implementation the company identified four cost pools-fabricating, finishing, quality control, and patent development. Employees classified as indirect labor were asked to estimate the percentage of their time spent on activities in each of these four pools. If they spent time on activities outside of these pools, that time was identified as organization sustaining and assigned to a fifth pool. You have been asked to calculate the total costs in each pool and to calculate an activity rate using the following activity cost drivers. Activity Cost Pool Activity Driver Machine hours Fabricating Finishing Annual Activity Driver Volume 500,000 machine hours 275,000 direct labor hours 48.000 batches Direct labor hours Quality Control Batches Patent Development Number of patents 200 patents Calculate the total indirect labor cost included in each of the five pools fabricating, finishing, quality control, patent development, and organization sustaining. Fabricating $ Finishing Quality control Patent development Organization sustaining Handy Fabricators is exploring adoption of an activity based costing system. In a first step towards implementation the company identified four cost pools-fabricating, finishing, quality control, and patent development. Employees classified as indirect labor were asked to estimate the percentage of their time spent on activities in each of these four pools. If they spent time on activities outside of these pools, that time was identified as organization sustaining and assigned to a fifth pool. You have been asked to calculate the total costs in each pool and to calculate an activity rate using the following activity cost drivers. Activity Cost Pool Activity Driver Machine hours Fabricating Finishing Annual Activity Driver Volume 500,000 machine hours 275,000 direct labor hours 48.000 batches Direct labor hours Quality Control Batches Patent Development Number of patents 200 patents Calculate the total indirect labor cost included in each of the five pools fabricating, finishing, quality control, patent development, and organization sustaining. Fabricating $ Finishing Quality control Patent development Organization sustaining

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