#1 Summarize the four steps in an activity-based costing system:

Step 1
Step 2
Step 3
Step 4

#2 Aimee Cosmetics Company uses the following allocation rates from its activity based costing system to assign overhead costs to products:

Activity : Allocation Rate

Purchasing raw materials : $40 per purchase order

Setting up machines for production : $150 per set-up

Inspecting finished products : $25 per inspection

.

Product A1 uses the following:

17 purchase orders

4 set-ups

12 inspections

How much overhead cost would be assigned to Product A1?

a) $7,095 b) $215 c) $1,580 d) $600