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Activity Cost Driver Total Cost Drive Volume Body MSK Neuro Number of Scans Labor Hours of scans 125 2,500 75 1,500 50 2,000 250 6,000
Activity Cost Driver Total Cost Drive Volume Body MSK Neuro Number of Scans Labor Hours of scans 125 2,500 75 1,500 50 2,000 250 6,000 Imaging Scans Labor Reads Images Labor Number of Images Labor Hours of reads 50 25,000 25 15,000 25 5,000 100 45,000 The cost accountant also determined how much overhead costs were incurred in each of the four activities as follows: Activity Overhead Costs Imaging Scans Labor Total Imaging Overhead $ $ $ 150,000 750,000 900,000 Reads Images Labor Total Reads Overhead $ $ $ 90,000 360,000 450,000 Total Overhead Costs $ 1,350,000 Required: 1. Determine the cost driver rate for each activity cost pool. 2. Use the activity-based costing method to determine the unit cost for each product. 3. Summarize and comment the results. Activity Cost Driver Total Cost Drive Volume Body MSK Neuro Number of Scans Labor Hours of scans 125 2,500 75 1,500 50 2,000 250 6,000 Imaging Scans Labor Reads Images Labor Number of Images Labor Hours of reads 50 25,000 25 15,000 25 5,000 100 45,000 The cost accountant also determined how much overhead costs were incurred in each of the four activities as follows: Activity Overhead Costs Imaging Scans Labor Total Imaging Overhead $ $ $ 150,000 750,000 900,000 Reads Images Labor Total Reads Overhead $ $ $ 90,000 360,000 450,000 Total Overhead Costs $ 1,350,000 Required: 1. Determine the cost driver rate for each activity cost pool. 2. Use the activity-based costing method to determine the unit cost for each product. 3. Summarize and comment the results
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