Question
Using the data above for products S and T, calculate the costs using activity-based costing. Allocate the costs of testing, computing, and development based on
Using the data above for products S and T, calculate the costs using activity-based costing. Allocate the costs of testing, computing, and development based on the rates of activity consumed by each product's development process. If required in your computations, round per unit costs to the nearest cent. Round your final answers to the nearest dollar.
Product S: Requires 4,000 hours of Testing, Requires 5,250 units of computing, Requires 25 developer hours to implement
Product T: Requires 1,000 hours of testing, Requires 2,250 units of computing power, Requires 75 developer hours to implement
Cost of each activity: Testing $26,400, Computing Power $39,600, Developer hourly cost $10 per hour
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