Question: Ace, Inc. has three activity pools which have the following costs: Machine Setups: $20,000 Material Moves: $20,000 Machine Operations: $16,000 The activity cost drivers (and
Ace, Inc. has three activity pools which have the following costs:
Machine Setups: $20,000
Material Moves: $20,000
Machine Operations: $16,000
The activity cost drivers (and driver quantity) for the three pools are, respectively, number of setups (100), number of material moves (220), and number of machine hours (175).
Product G10 used the following quantity of activity drivers to produce 100 units of final product:
12 setups
20 material moves, and
32 machine hours
The total costs using activity based costing is:
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