Chapter $7HW$ Chapter $7$ HW

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Cost $of$ goods sold $,$$$1,214,854$

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The company created an activity$-$based costing system to evaluate the profitability of its products. Hi$-$Tek's ABC implementation team concluded that $$56,000$ and $$108,000$ of the company's advertising expenses could be directly traced to B$300$ and T$500,$

$6\mathrm{.}68$

respectively. The remainder of the selling and administrative expenses was organization$-$sustaining in nature. The ABC team also distributed the company's manufacturing overhead to four activities as shown below:

polnts

$\backslash$table$[[$Activity Cost Pool $($and Activity Measure$),\backslash$table$[[$Manufacturing$],[$Overhead$]],$Activity$],[$B$300,$T$500,$Total$],[$Machining $($machine$-$hours$),$$$208,624,90,400,,63,000,,153,400,],[$Setups $($setup hours$),120,830,71,210,281],[$Product$-$sustaining $($number of products$),100,200,1,1,2],[$Other $($organization$-$sustaining costs$),60,600,$NA$,$NA$,$NA$],[$Total manufacturing overhead cost,$$490,254,,,]]$

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