Q: Calculate the costs of 1 automotive felt and 1 roll carpet felt separately according to the cost direction of the activity base that will help Mr. White.

Table 1: Budgeted General Production Costs for January

General Production Costs	Cost
Indirect Labor Costs	5.760	$
Machine Depreciation	3.000	$
Heat, Light, Energy	2.000	$
Maintenance And Repair	500	$
Factory Rent	4.000	$
TOTAL	15.260	$

There are 7 basic activity pools at the factory. These are;

Activity Pools	Code	Indirect Labour Spent	the maintenance and repair that occur within hours of total time the shares
receiving a customer order	F1	17%	2%
placing a purchase order	F2	17%	1%
product design	F3	17%	4%
adjusting production machines	F4	5%	6%
processing products on production machines	F5	22%	80%
quality control	F6	17%	2%
packaging	F7	5%	5%
Total		100%	100%

It has identified keys for use in distributing General Production Costs to operating pools. Mr. White has decided to use indirect labor hours to distribute indirect labor costs, maintenance repair hours to distribute maintenance repair costs, the cost price of machines to distribute machine depreciation; kilowatt hours to distribute heat, light energy, and m2 to distribute factory rent. The information obtained from the documents in Mr. White's possession is summarized in Table 2 below:

Table 2: Distribution of the Amount of Cost Drivers That Will be Used to Reduce the Overall Production Costs in the Operating Pools on the Basis of the Operating Pool

	F1	F2	F3	F4	F5	F6	F7	Total
Machine Costs	0	0	600	1200	25800	1500	900	30000	$
Kwsa	150	100	300	150	3900	200	200	5000	Kwh
Factory Area	20	40	140	60	1600	20	120	2000	m2

Mr. White has decided to use the following distribution keys when distributing the overall production costs collected in the activity pools to the products.

Other information obtained by Mr. White from the documents he has regarding the activities carried out in January is summarized in Table 3.

Table 3: Distribution of the Amount of Cost Driver That Will be Used to Distribute the Costs Collected in the Activity Pools to the Finished Products on a Finished Product Basis

Activity Pools Code	Cost Drivers	automobile felt	carpet felt	Total	Unit
F1	Number of customer orders	5	45	50	piece
F2	Number of purchase orders placed	12	48	60	piece
F3	The number of new products that need to be designed	5	1	6	piece
F4	The number of manufacturing processes that require adjustment of their machines	15	30	45	piece
F5	Machine clock	124	1796	1920	mh
F6	Number of quality controls	50	85	135	piece
F7	Number of shipments sent to the customer	10	90	100	piece

Mr. White realized that although the products went through a similar manufacturing process, the resources they used were very different from one another, and decided to take into account the costs of the products with the base costing activity new.