samuelson uses activity based costing the company manufactures two products x and y 598423
Samuelson uses activity-based costing. The company manufactures two products, X and Y. The annual production and sales of Product X are 3,000 units and of Product Y 2,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows:
|
Expected activity |
||||
|
Cost pool |
Estimated cost |
X |
Y |
Total |
|
Activity 1 |
E12,000 |
300 |
500 |
800 |
|
Activity 2 |
E15,000 |
100 |
400 |
500 |
|
Activity 3 |
E32,000 |
400 |
1200 |
1600 |
|
Total costs |
E59,000 |