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Spice Gram produces hot sauce and has the following indirect costs: Indirect Costs Indirect labor $ 3 5 5 , 0 0 0 Indirect materials
Spice Gram produces hot sauce and has the following indirect costs:
Indirect Costs
Indirect labor $
Indirect materials $
Product design $
Equipment depreciation $
Factory lease $
Total $
Spice Gram has identified the following activities for its activitybased costing system: Production, Quality Control, Patent Filing, Marketing, and Facility Support. Production is a unitlevel cost, Quality Control is a batchlevel cost, Patent Filing and Marketing are productlevel costs, and Facilitylevel costs are aggregated in a facilitysupport pool.
Spice Gram has gathered data to estimate how indirect cost categories relate to activity cost pools as follows:
Resource Consumption by Activity
Production Quality Control Patent Filing Marketing Facility Support Total
Indirect labor
Indirect materials
Product Design
Equipment Depreciation
Factory Lease
Use the template below to determine the total amount of indirect cost in each activity cost pool:
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