Information about quality control costs

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Reference no: EM13115319

How would one find quality control costs under two different product costing systems?

If Quality control costs were at 14.5%

Monthly direct labor costs were $27,500

And we had ABC information like:

Activity Cost Pool Cost Driver Pool Rates Quantity of Driver

Incoming Inspection Type of material $11.50 per 12 types

In-process inspection Number of units .14 per 17,500 units

Product certification Per order $77.00 25 orders

How would I figure the monthly quality costs when I use overhead through the basis of direct labor costs?

Then what would I do to figure out the quality costs though an ABC system?

Reference no: EM13115319

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