Ace, Inc. has three activity pools which have the following costs: Machine setup

Question

Ace, Inc. has three activity pools which have the following costs: Machine setups $15,000 Material moves $22,000 Machine operations $14,000 The activity cost drivers (and driver quantity) for the three pools are, respectively, number of setups (100), number of material moves (220), and number of machine hours (175). Product G10 used the following quantity of activity drivers to produce 100 units of final product: 12 setups, 20 material moves, and 32 machine hours. The total ABC cost and unit ABC cost assigned to Product G10 is: Select one: A. $3,630 total ABC cost and $36.30 unit ABC cost B. $10,300 total ABC cost and $103. unit ABC cost C. $6,360 total ABC cost and $63.60 unit ABC cost D. $3,300 total ABC cost and $330 unit ABC cost

Explanation / Answer

Answer:-

Explanation:-

Total ABC cost and unit Particulars Amount $ Machine setups 12 setups*$150 per setup 1800 Material moves $20 per material move*$100 per move 2000 Machine opreations 32 machine hours*$80 per machine hour 2560 Total ABC cost (a) 6360 No. of units of final product (b) 100 Cost per unit (c=a/b) 63.6

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