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DATA INPUT:
Cost Cost Product
Activity Cost Driver Driver Line
Cost Cost Driver Product
Quantity for
Quantity for Production
Activity Pool Driver Quantity Line
Product Line
Product Line Volume
Machine 310,500$ Machine 115,000 REG 50,000 50,000 5,000
Related Hours ADV 48,000 48,000 4,000
GMT 17,000 17,000 1,000
Total 115,000 115,000
Material 52,500 Production 100 REG 40 40 5,000
Handling Runs ADV 40 40 4,000
GMT 20 20 1,000
Total 100 100
Purchasing 75,000 Purchase 300 REG 100 100 5,000
Orders ADV 96 96 4,000
GMT 104 104 1,000
Total 300 300
Setup 85,000 Production 100 REG 40 40 5,000
Runs ADV 40 40 4,000
GMT 20 20 1,000
Total 100 100
Inspection 27,500 Inspection 1,100 REG 400 400 5,000
Hours ADV 400 400 4,000
GMT 300 300 1,000
Total 1,100 1,100
Shipping 66,000 Shipments 1,100 REG 500 500 5,000
ADV 400 400 4,000
GMT 200 200 1,000
Total 1,100 1,100
Engineering
32,500
Engineering
650 REG 250 250 5,000
Hours ADV 200 200 4,000
GMT 200 200 1,000
Total 650 650
Facility 575,000 Machine 115,000 REG 50,000 50,000 5,000
Hours ADV 48,000 48,000 4,000
GMT 17,000 17,000 1,000
Total 115,000 115,000
Grand Total 1,224,000$ Grand Total
SOLUTION
Cost Activity Product Activity
Activity Cost Driver Cost for Line Cost
Cost Cost Driver Pool Product Quantity for Product Production per Unit
Activity Pool Driver Quantity Rate Line Product Line Line Volume of Product
Machine 310,500$ Machine 115,000 2.70$ REG 50,000 135,000$ 5,000 27.00$
Runs ADV 40 34,000 4,000 8.50
Shipping 66,000 Shipments 1,100 60.00 REG 500 30,000$ 5,000 6.00
ADV 400 24,000 4,000 6.00
GMT 200 12,000 1,000 12.00
