st ver ups Total cost in Activ cost pool Produ $13,000 45
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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