M4-6 Assigning Costs Using Activity Rates

Acoma Co. has identified one of its cost pools to be quality control and has assigned $125,0000 tothat pool. Number of inspections has been chosen as the cost driver for this pool; Acoma performs25,000 inspections nually. Suppose Acoma manufactures two products that consume 10,000 and15,000 inspections each. Using activity rates, determine the amount of quality control cost to beassigned to each of Acoma's product lines.