Q13-2: Randys Components uses an activity based costing system for its product costing. For the last quarter, the following data relates to costs, output volume and cost drivers. If set-up costs are driven by the number of production runs, what are the correct set-up costs for each product?

Overhead Costs
Machinery	172,000
Set-ups	75,000
Materials Handling	25,000
Total	272,000

Question 6. 6. Q13-2: Randys Components uses an activity based costing system for its product costing. For the last quarter, the following data relates to costs, output volume and cost drivers:

Overhead Costs
Machinery	172,000
Set-ups	75,000
Materials Handling	25,000
Total	272,000

Product information	A	B	C
Production and sales units	5,000	3,500	2,800
Number of production runs	11	9	6
Number of stores orders	15	10	9

(Points : 9)

Potential Matches:

1 : 8.65

2 : 8.24

3 : 9.27

Answer

_____: Product A

_____: Product B

_____: Product C