# ABC Company produces two types of stereo units. Activity data follows: Required: (i). Calculate the consumption ratios for each activity.

## Question:

ABC Company produces two types of stereo units. Activity data follows:

**Required: **

(i). Calculate the consumption ratios for each activity.

(ii). Group activities based on the consumption ratios and activity level.

(iii). Calculate a rate for each pooled group of activities.

(iv). Using the pool rates, calculate unit product costs.

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**8**- A CTIVITY-BASED COSTING..Section: Problem

Problem: 1

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