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Product A Product B Requires 3,520 hours of testing Requires 880 hours of testing Requires 4,200 units of computing power Requires 1,800 units of computing
Product A | Product B | |
Requires 3,520 hours of testing | Requires 880 hours of testing | |
Requires 4,200 units of computing power | Requires 1,800 units of computing power | |
Requires 20 developer hours to implement | Requires 80 developer hours to implement | |
|
Using the data above for products A and B, 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.
Cost | Activity Base |
Testing | Hours of testing |
Computing cost | Units of computing power |
Developer cost | Development hours |
Product A | Product B | |||
Testing cost | $____ | Testing cost | $____ | |
Computing cost | $____ | Computing cost | $____ | |
Developer cost | $____ | Developer cost | $____ | |
Total cost | $____ | Total cost | $____ |
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