Reference no: EM133065507
Question - The company decides to compute product costs assuming they implement an Activity Based Costing (ABC) system. The company first assigns all overhead to one of six cost pools. The overhead cost pools and the cost drivers selected for those cost pools are:
Overhead Cost Pool Cost Pool Total Cost Pool Driver
Supervision $340,000 Direct labor hours
Material Handling $133,000 Direct material cost
Testing $150,000 Testing hours
Wastewater treatment $300,000 Wastewater generated (gal)
Equipment depreciation $500,000 Machine hours
Shipping $127,000 Weight (pounds)
What would the per unit product cost be reported for each product if this ABC system were implemented? Assume that the production mix and costs would remain as originally planned.