Digitech, Ltd. manufactures various computer components in its Tokyo plant. The following costs are budgeted for January. (Yen is the Japanese monetary unit.)

                   

Insurance, plant	780,000 yen
Electricity, machinery	156,000
Electricity, light	78,000
Engineering design	793,000
Depreciation, plant	910,000
Depreciation, machinery	1,820,000
Custodial wages, plant	52,000
Equipment maintenance, wages	195,000
Equipment maintenance, parts	39,000
Setup wages	52,000
Inspection of finished goods	39,000
Property taxes	156,000
Natural gas, heating	39,000
Raw materials and components	3,835,000

wRequired: 

Divide these costs into activity cost pools, and identify a cost driver for assigning each pool of costs to products. Calculate the total cost in each activity cost pool.

Answer rating: 100% (QA)

Step 1 of 2 A Under the activitybased costing ABC system significant activities are identified and o... View the full answer