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Summertime Cledus Productions recently switched to using an activity-based costing (ABC) system. The company produces two products CYT56 & RWK29. The monthly production and sales
Summertime Cledus Productions recently switched to using an activity-based costing (ABC) system. The company produces two products CYT56 & RWK29. The monthly production and sales volume of CYT56 is 900 units and of RWK29 is 750 units. There are three activity cost pools with the following expected activities and estimated total costs for the month: Activity Cost Pool Activity 1 Activity 2 Activity 3 Estimated Cost $40,000 $27,000 $53,200 Expected Activity CYT56 300 700 800 Expected Activity Using ABC, the OH cost per unit of CYT56 is approximately: Using ABC, the OH cost per unit of RWK29 is approximately: RWK29 500 200 3,000 Total 800 900 3800
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