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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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