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Q13-2: Randy's Components uses an activity based costing system for its product costing. For the last quarter, the following data relates to costs, output volume
Q13-2: Randy's Components uses an activity based costing system for its product costing. For the last quarter, the following data relates to costs, output volume and cost drivers. If set-up costs are driven by the number of production runs, what are the correct set-up costs for each product?
Overhead Cost
Machinery
172,000
Set-ups75,000Materials Handling25,000
Total272,000
Product informationABCProduction and sales units5,0003,5002,800Number of production runs1196Number of stores orders15109
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