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Required information Skip to question [The following information applies to the questions displayed below.] Assume that the Oregon Ice Cream Company is considering the costs
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[The following information applies to the questions displayed below.]
Assume that the Oregon Ice Cream Company is considering the costs of two of their product linesice cream sandwiches and dessert bars. The company identified the following partial list of activities, costs, and activity drivers expected for the next year.
Activity | Expected Costs | Cost Driver | ||
Extrusion costs | $ | 637,500 | Number batches made | |
Packaging costs | $ | 44,000 | Number of units made | |
Ice Cream Sandwiches | Dessert Bars | |||||
Production volume | 350,000 | units | 200,000 | units | ||
Batches made | 400 | batches | 350 | batches | ||
How much overhead cost will be assigned to the ice cream sandwich product line using activity-based costing (ABC)?
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