Question: Digitech Ltd manufactures various computer components in its Tokyo plant

Digitech, Ltd. manufactures various computer components in its Tokyo plant. The following costs are budgeted for January. (Yen is the Japanese monetary unit.)
Insurance, plant................................................................... 780,000 yen
Electricity, machinery......................................................... 156,000
Electricity, light.................................................................. 78,000
Engineering design............................................................. 793,000
Depreciation, plant............................................................. 910,000
Depreciation, machinery....................................................1,820,000
Custodial wages, plant........................................................ 52,000
Equipment maintenance, wages.......................................... 195,000
Equipment maintenance, parts............................................ 39,000
Setup wages........................................................................ 52,000
Inspection of finished goods.............................................. 39,000
Property taxes..................................................................... 156,000
Natural gas, heating............................................................ 39,000
Raw materials and components.........................................3,835,000

Required:
Divide these costs into activity cost pools, and identify a cost driver for assigning each pool of costs to products. Calculate the total cost in each activity cost pool.


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  • CreatedApril 22, 2014
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