chapter 04: Activity-Based Costing and Cost Management Assign indirect costs to products or services using a single volume-based cost driver Knowledge Check Bluebean Inc produces two lines of coffee cups: espresso coffee cups and travel coffee mugs. The unt cost information is shown here. The company uses a traditional volume-based costing system and belleves that the number of labor hours is the appropriate cost driver Activity Cost pool Espresso coffee cups Travel coffee mugs Selling price Direct materials Direct labor $20 $6 $2 $25 $8 $5 Units produced Direct labor hours 10,000 units 10,000 hours 4,000 units 6,000 hours Estimated total overhead costs equal $80,000 Travel coffee mugs Espresso coffee cups select select Item select Predetermined overhead rate select Total manufacturing overhead allocated Slide 3