Activity-based Costing: Calculate Cost Driver Rates, Budgeted

School: Harvard University - Course: FINANCE MGMT E-260 - Subject: Accounting

Activity-based Costing Student NumberM00741904 Question 1 Calculate the activity-based cost driver rates for each cost pool. Cost poolOriginal costStudent NumberNew CostNumber of Producton setup30,000190431,90415 Production testing20,000190421,90440 Product Inspection10,000190411,90450 Customer orders5,00019046,90410 Question 2 Calculate the budgeted total annual overhead costs of Model X. Cost poolAbcOverhead Production setup212.69425.3867 Product testing54.76109.52 Product inspection23.8123.808 Customer overhead6.90138.08 Total overhead cost696.79 Question 3 Calculate the budgeted unit cost and selling price per unit of Model X Material cost3.5 Per unit Direct labour5 minutes per unit at 14.50 per hourCostper unit 1.20 Overhead cost0.696795 Per unit Total unit cost5.40 Profit Mark up24% of total unit cost1.30 Total unit costProfit 5.401.30 Selling Price6.70Per unit