Required information

M$4-8$ and M$4-9$

Acoma Company has identified one of its activity pools to be quality control and has assigned $$303,600$ to that pool.

Number of inspections has been chosen as the cost driver for this pool; Acoma performs $34,500$ inspections annually.

Suppose Acoma manufactures two products that consume $20,700($Product $1)$ and $13,800($Product $2)$ inspections each.

M$4-8($Algo$)$ Assigning Costs Using Activity Rates $[$LO $4-4]$

Required:

Using activity rates, determine the amount of quality control cost to be assigned to each of Acoma's product lines.

Note: Do not round intermediate calculations.