st ver ups Total cost in Activ cost pool Produ $13,000 45

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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ABC Company has an ABC system with three pools:
Total cost in
cost pool
Activity
Machine
setups
Customer
service
Maintenance
$18,500
$5,000
Cost
Driver
$29,000
#setups
O $9,000
#orders
not enough information
machine-
hours
$13,000
$6,000
$10,000
Compute total capacity costs allocated to product X.
Activity volume (#cost driver units)
Product X Product Y
Total
45
15
25
20
5
25
65
20
50
Transcribed Image Text:ABC Company has an ABC system with three pools: Total cost in cost pool Activity Machine setups Customer service Maintenance $18,500 $5,000 Cost Driver $29,000 #setups O $9,000 #orders not enough information machine- hours $13,000 $6,000 $10,000 Compute total capacity costs allocated to product X. Activity volume (#cost driver units) Product X Product Y Total 45 15 25 20 5 25 65 20 50
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