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The Overhead Cost; the Product Margin. Bott these are the numbers you will use for ABC: Sales $2,660,000 $540,000 Direct costs: Direct materials $905,500 $69,500

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The Overhead Cost; the Product Margin. Bott these are the numbers you will use for ABC: Sales $2,660,000 $540,000 Direct costs: Direct materials $905,500 $69,500 Direct labor..... $263,750 $87,500 Shipping.......... $60,000 $5,000 Computation of Activity Rates Activity Cost Pools (a) Total Cost (b) Total Activity (a) = (b) Activity Rate Customer orders........ $370,000 1,000 orders Product design..... $252,000 400 designs Order size. $380,000 20,000 MHs You will then multiply the actual activity given product

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