Product G10 used the following quantity of activity drivers to produce 100 units of final product: 12 setups 22 material moves, and 32 machine hours. The total ABC cost and unit ABC cost assigned to Product G10 is:

Complete Question:

Ace, Inc. has three activity pools which have the following costs: Machine setups $15,000 Material moves $22,000 Machine operations $14,000 The activity cost drivers (and driver quantity) for the three pools are, respectively, number of setups (100), number of material moves (220), and number of machine hours (175). Product G10 used the following quantity of activity drivers to produce 100 units of final product: 12 setups, 20 material moves, and 32 machine hours. The total ABC cost and unit ABC cost assigned to Product G10 is: Select one: A. $3,630 total ABC cost and $36.30 unit ABC cost B. $10,300 total ABC cost and $103. unit ABC cost C. $6,360 total ABC cost and $63.60 unit ABC cost D. $3,300 total ABC cost and $330 unit ABC cost

Ace, Inc.

The total ABC cost is:

= $6,560 and

Unit ABC cost assigned to Product G10 is:

= $65.60.

Explanation:

a) Data and Calculations:

Activity Pools            Costs        Cost Drivers                              Activity Rate

Machine setups        $15,000   number of setups (100)              $150/setup

Material moves        $22,000   number of material moves (220) 100/move

Machine operations $14,000   number of machine hours (175)    80/m.hr

Product G10

Number of units produced = 100

Machine setups cost =    $1,800 (12 * $150)

Material moves cost =      2,200 (22 * $100)

Machine operations cost 2,580 (32 * $80)

Total ABC cost =            $6,560

Unit ABC cost = $65.60 ($6,560/100)

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