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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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