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The manufacturing division of an electronics company uses activity - based costing. The company has identified three activities and the related cost drivers for indirect

The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities and the related cost drivers for indirect production costs.
Activity Cost Driver
Activity 1 Direct labor cost
Activity 2 Direct materials cost
Activity 3 Kilowatt hours
Three types of products are produced. Direct costs and cost-driver activity for each product for a month are as follows:
Product A Product B Product C
Direct materials cost $125,000 $50,000 $75,000
Direct labor cost $1,000 $3,000 $2,000
Direct labor hours 5001,5001,000
Kilowatt hours 200,00070,000150,000
Indirect production costs for the month are as follows:
Activity 1 $60,000
Activity 245,000
Activity 395,000
Total $200,000
Required: Compute the total Indirect Production Costs allocated to Product C.

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