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Question 2: Allocating costs using ABC You have an ABC system with three pools number of cost driver units total cost in the pool product
Question 2: Allocating costs using ABC You have an ABC system with three pools
number of cost driver units | ||||
total cost in the pool | product A | product B | total | |
pool 1 | $60,000 | 4,000 DL$ | 6,000 DL$ | 10,000 DL$ |
pool 2 | $45,000 | 20 setups | 30 setups | 50 setups |
pool 3 | $30,000 | 50 hours | 150 hours | 200 hours |
Compute the activity rates and the allocated costs for products A and B.
activity rate | allocated costs for product A | allocated costs for product B | |
pool 1 | $ per DL$ | $ | $ |
pool 2 | $ per setup | $ | $ |
pool 3 | $ per hour | $ | $ |
total allocated costs for each product | $ | $ |
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