Exercise cost by activities The company SAVE THE PLANET has the following information of its operation during the past year, ESTIMATED INDIRECT FACTORY COSTS $2,345,000 ESTIMATED LABOR HOURS 435,000 The company manufactures 3 products for cleaning green areas, which you have the information below. Manufacturing Hours 3 60 Product Cost per Hour Raw Material Cost Units 1 425 125,000 2 8.75 80 80,000 3 12.00 50 175,000 4.75 2 P2 ACTIVITIES Groups Costs Causal PI P3 Manufacturing processes. 1,000,000 Hours Hand work 3 4.75 2 (units made) Product Testing 800,000 Units for testing 10% 10% 10% (one made) Maintenance 545,000 Manpower Hours 2 (units made) 34.75 1. Calculate the cost allocation rate 2. Calculate the ABC Costs 3. Contrast differences if any. Exercise cost by activities The company SAVE THE PLANET has the following information of its operation during the past year, ESTIMATED INDIRECT FACTORY COSTS $2,345,000 ESTIMATED LABOR HOURS 435,000 The company manufactures 3 products for cleaning green areas, which you have the information below. Manufacturing Hours 3 60 Product Cost per Hour Raw Material Cost Units 1 425 125,000 2 8.75 80 80,000 3 12.00 50 175,000 4.75 2 P2 ACTIVITIES Groups Costs Causal PI P3 Manufacturing processes. 1,000,000 Hours Hand work 3 4.75 2 (units made) Product Testing 800,000 Units for testing 10% 10% 10% (one made) Maintenance 545,000 Manpower Hours 2 (units made) 34.75 1. Calculate the cost allocation rate 2. Calculate the ABC Costs 3. Contrast differences if any