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Assume that the Oregon Ice Cream Company is considering the costs of two of their product lines-ice cream sandwiches and dessert bars. The company identified the following partial list of activities, costs, and activity drivers expected for the next year.
Activity Expected Costs Cost Driver
Extrusion Cost $637,500 number of batches made
Packaging Cost $44,000 number of units made
Ice cream sandwiches Dessert Bars
Production volume 350,000 units 200,000 units
Batches made 400 batches 350 Batches
Refer to the data in the preceding tables. How much overhead cost will be assigned to the ice cream sandwich product line using activity-based costing (ABC)?
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