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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 product A
Question 2: Allocating costs using ABC You have an ABC system with three pools number of cost driver units total cost in the product A product B total pool pool 1 $80,000 4,000 DL$ 6,000 DL$ 10,000 DL$ pool 2 $60,000 20 setups 30 setups 50 setups $40,000 50 hours 150 hours 200 hours pool 3 Compute the activity rates and the allocated costs for products A and B. allocated costs activity rate allocated costs for product A for product B pool 1 $ per DL$ $ $ $ per pool 2 $ setup pool 3 $ per hour $ $ total allocated costs for each $ $ product $ ta
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