Dept. A	Dept. B	Engineering and PC	Marketing and CS
Production and cost data	Standrad	Designer wear
Production and sales units	192000	24000
Selling price (per unit)	$15	$50
Materials ( per unit)	1.7	8
Labor (per unit)	4.3	14.2
Manufacturing overheads			745200
Number of machine set-ups	4	24
Marketing overheads				1296000

Use single-rate; direct method to allocate engineering and marketing overheads

Engineering overheads include machine setting ($460,800) and inspection ($284,400) activities. Marketing involves channel ($496,000) and branding ($800,000) activities. The inspection and channel costs are driven by the number of units produced & sold.

Computing product costs and profits under conventional and ABC approaches