Question
NEED SOME HELP IN THIS: VI. The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities and the related
NEED SOME HELP IN THIS:
VI.The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities and the related cost drivers for indirect production costs.
ActivityCost Driver
Activity 1Direct labor cost
Activity 2Direct materials cost
Activity 3Kilowatt hours
Three types of products are produced.Direct costs and cost-driver activity for each product for a month are as follows:
Product AProduct BProduct C
Direct materials cost$125,000$50,000$75,000
Direct labor cost$1,000$3,000$2,000
Direct labor hours5001,5001,000
Kilowatt hours325,00075,000200,000
Indirect production costs for the month are as follows:
Activity 1$18,000
Activity 225,000
Activity 360,000
Total$103,000
Required:Compute the total Indirect Production Costs allocated to ProductA.(10 pts.)
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