(Q.2) ABC Product Cost An order of 1,000 units of product B causes 2 quality inspections, 3 machine set-ups, 2,000 machine hours and the use of 200 kg of material. What is the activity-based product cost of one unit of B? (Neglect other costs incl. labor cost.) Activity cost pools Controlling quality Setting up machinery Operating machinery Using materials $/year 50,000 10,000 20,000 700,000 Products No. of quality inspections No. of machine set-ups No. of machine hours Kg of material used B C 250 350 400 10 25 15 10,000 14,000 16,000 8,000 12,000 15,000