can be traced to four separate activity pools. The budgeted activity cost and ac

Question

can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Scheduling Materials handling Product development Production $314,700 $215,300 $490,000 $711,600 $1,401,200 Number of production orders Number of moves Number of engineering changes Machine hours Number of Purchase Orders 4,060 1,800 Number Number of Engineering Changes 15 Number Number of Production Orders 270 195 770 Machine of Disk drives Tape drives Wire drives Determine the activity-based cost for each tape drive unit. 1,480 740 4,400 Hours Units 2,000 2,000 9,700 4,400 11,600 2,000 24 12,900 a. $291.11 Ob. $876.76 , $16.78 d. $181.18 Next Previous

Explanation / Answer

CALCULATION FOR ACTIVITY RATE FOR EACH ACTIVITY

Calculation of ABC cost

Activity base Amount No of total base Rate Procurement no of purchase orders 314700 18760 16.775 schedulling no of production orders 215300 1235 174.33 Material hand. no of moves 490000 6620 74.018 product develop no of eng chng 711600 45 15813.33 production machine hours 1401200 23300 63.137

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