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Pamlico Motors manufactures seven models of cars and two models of trucks. Each model of car uses the assembly line for 10% of the total
Pamlico Motors manufactures seven models of cars and two models of trucks. Each model of car uses the assembly line for 10% of the total machine hours, and each model of truck uses the assembly line for 15% of the total machine hours. Therefore, 10% of overhead costs are allocated to each model of car, and 15% of overhead costs are allocated to each model of truck. This is known as activity-based costing. a balanced scorecard. enterprise resource planning. total quality management.
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