Refer to your solution to requirement (2) of the preceding problem.

Required:

Prepare an exhibit similar to Exhibit in the text to explain the ABC calculations for the material-handling activity. Use your exhibit to explain ABC to a friend who is not a business major.

Transcribed Image Text:

INFORMATION SUPPLIED BY ABC PROJECT TEAM Cost driver quantity for each product line add column G to get total in column D Product line Cost drivers Aclivity Product Activity Cost forLine Cost Cost Cost Driver Pool Product Quanity tor Prodact Driver Quaantity, Rate! Line , product Linel Line İvaturmelot Producti per Unit Acbrtyl pool Machine 512 42000 Machine 230000 34o SID DEL ULT Total 100,0005 540,00010,000 s 54. 96,000 34,000 103,8 8,000 2,000 4.3 91.80 230,000 TIONS 1 Compute pool rate machine-related activity Pool Activitydrivarrate oost pool quantity $1,242,000 230,00D $5.40 2 Compute total a y cost for each product line ProductFool Cost driver quantity Activity cost for far each product lineeach prockact line rale STD 5.40 5.40x 100,000 96,000 $540,000 518,400 83,600 3 Compute product cost per unit for each product ProduetActivity cost for Product ne Activity cost pe ine ech product lineproduction volumeunit of product STD ULT $340,000 518,400 183,600 0,000 8,000 2,000 554,00 64.80 91.80