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PepsiCo uses activity-based costing and has identified the following cost pools and drivers: Setup costs of $3,000,000 with 500 setups, material handling costs of $1,500,000
PepsiCo uses activity-based costing and has identified the following cost pools and drivers: Setup costs of $3,000,000 with 500 setups, material handling costs of $1,500,000 with 50,000 material moves, and inspection costs of $2,000,000 with 100,000 inspections. Calculate the cost driver rate for each pool and determine the cost assigned to a product requiring 20 setups, 8,000 material moves, and 10,000 inspections. Prepare the balance sheet after the formation of the partnership.
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