Juan Corporation has used traditional costing where overhead cost is applied based on 15% of Direct Labor cost. Direct labor cost for the period is 30,000 and direct materials used is 10,000. The company considered using ABC Costing and determined the following:

 

Activity 1 23 Cost Driver No of set ups No of units produced No of orders Cost rate 2 per set up 3 per unit 3 per order The total product cost assigned to Product G using ABC is? For Product G 10 set ups 1,000 units 20 orders