Question: Assume that Dunking, Inc. has three activity pools which have the following costs: Machine Setups, $40,000; Material Moves, $35,000; and Machine Operations, $18,000. The activity
Assume that Dunking, Inc. has three activity pools which have the following costs: Machine Setups, $40,000; Material Moves, $35,000; and Machine Operations, $18,000. The activity cost drivers (and driver quantity) for the three pools are, respectively, number of setups (200 setups), number of materials moves (350 moves), and number of machine hours (360 hours). Product Q7 used the following quantity of activity drivers to produce 100 units of final product: 20 setups, 30 material moves, and 65 machine hours. The total ABC cost and unit ABC cost assigned to Product QZ are: $93.000 total ABC cost & $930 unit ABC cost $93,000 total ABC cost & $93 unit ABC cost $10,250 total ABC cost & $102.50 unit ABC cost $3,500 total ABC cost & $35 unit ABC cost None of these numbers are correct
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