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Need help to understand and answer the computing cost for product S and T, question below. Activity-Based Costing using the data above for products S
Need help to understand and answer the computing cost for product S and T, question below.
Activity-Based Costing using the data above for products S and T, calculate the costs using activity-based costing. Allocate the costs of testing, computing, and development based on the rates of activity consumed by each product's development process. If required in your computations, round per unit costs to the nearest cent. Round your final answers to the nearest dollar. Testing Computing cost Developer cost Activity Base Hours of testing Units of computing power Development hours Product S Product T Testing cost Computing cos Developer cost Total cost Testing cost Computing co Developer cost Total cost The budgeted activity costs are assigned to products using factory overhead rates tor each activity. These rates are called activity rates because they are related to activities. Acttvity rates are determined as follows: Activity Rete = Budgeted Activity Cost / Total Activity Base Usage The costs are allocated to the product by multiplying the activity-base usage by the computed activity rate.
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