Question: You are considering adopting an activity based costing model in your organization. Two activity pools are machine setup costing $30,000 and material moves costing $45,000.
You are considering adopting an activity based costing model in your organization. Two activity pools are machine setup costing $30,000 and material moves costing $45,000. The measure for each is the number of occurrences which are 200 and 450 for machine setups and material moves, respectively. Product XJ500 requires 25 setups and 40 material moves. What is the per unit ABC cost assuming 100 units produced?
| a. | $450.00 | |
| b. | $115.38 | |
| c. | $77.50 | |
| d. | $90.45 |
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