Question

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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