Question

Wave Crest Cosmetics produces cosmetic products for 11 major buyers. One customer accounts for of the sales, the other 10 cus
Which of the following stages are a part of activity-based costing? I. Trace costs to activities II. Overhead costs are assig
Activity drivers are: a. not realistic in todays manufacturing environment. Ob. not required under activity-based costing. c
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Answer #1

Cost to be assigned to large customer = Total cost*Activity by large customer/Total activity

= 518500*5/(300+5)

= $8,500

Hence, the answer is c.

The answer is a. I, II and IV

Activity drivers are

c.Factors that measure the consumption of activities

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