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Under the ABC costing system, the activity cost per round table is Tableco will manufacture two types of tables in the coming year-square tables and

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Under the ABC costing system, the activity cost per round table is

Tableco will manufacture two types of tables in the coming year-square tables and round tables. Tableco is considering introducing an activity- based costing system. Below is each activity, its cost and related activity driver Activity Cost Activity driver setups 96 000 Number of parts 48 000 Number of parts Number of Machine setups 500 000 Materials handling Cutting 2 100 Direct labour Assembly hours 350 000 Number of units Finishing The level of activity estimated for the year is Units to be produced Number of setups Number of parts per unit Direct labour hours per unit Square Round 25 000 10 000 25 16 2 100 32 4

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