Answer Happy

For XYZ company the following cost pools and cost drivers are provided under Activity Based costing system. Activity Cost Driver (activity) Overhead Cost Purchasing Materials Pieces of materials $ 200,000 Machine Setups Machine setups 800,000 Inspections Inspection hours 400,000 Running Machine Machine hours 600,000 Total Overhead $ 2,000,000 Find out Activity rate and ABC cost for following both the two products Information for each of the two products: Touring Mountain Purchasing Materials 6,000 pieces 4,000 pieces Machine Setups 10 setups 30 setups Inspections 200 hours 200 hours Running Machine 1,500 hours 1,500 hours Estimated Units 100,000 pieces 400 setups 4,000 inspect. hours 20,000 mach. Hours