Required information Acoma Co. has identified one of its cost pools to be quality control and has assigned $239,400 to that pool. Number of inspections has been chosen as the cost driver for this pool; Acoma performs 34,500 inspections annually. Suppose Acoma manufactures two products that consume 20,700 (Product 1) and 13,800 (Product 2) inspections each. Using activity rates, determine the amount of quality control cost to be assigned to each of Acoma's product lines. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.) Product 1 Product 2 Quality Control Costs
Required information Acoma Co. has identified one of its cost pools to be quality control and has assigned $239,400 to that pool. Number of inspections has been chosen as the cost driver for this pool; Acoma performs 34,500 inspections annually. Suppose Acoma manufactures two products that consume 20,700 (Product 1) and 13,800 (Product 2) inspections each. Using activity rates, determine the amount of quality control cost to be assigned to each of Acoma's product lines. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar.) Product 1 Product 2 Quality Control Costs
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:### Required Information
Acoma Co. has identified one of its cost pools to be quality control and has assigned $239,400 to that pool. The number of inspections has been chosen as the cost driver for this pool. Acoma performs 34,500 inspections annually. Suppose Acoma manufactures two products that consume 20,700 (Product 1) and 13,800 (Product 2) inspections each.
#### Instructions
Using activity rates, determine the amount of quality control cost to be assigned to each of Acoma’s product lines. **(Do not round intermediate calculations. Round your final answer to the nearest whole dollar.)**
#### Table
| Quality Control Costs |
|-----------------------|
| Product 1 |
| Product 2 |
Expert Solution
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Step 1
ACTIVITY BASED COSTING
Activity based costing is used to identify, Describe, assign cost to, & Report on agency Operation.
Activities based costing is a system that focuses on activities as the fundamental cost object & Uses the cost of these activities for computing the cost of product.
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