Question 2: Allocating costs using ABC You have an ABC system with three pools number of...

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Question 2: Allocating costs using ABC You have an ABC system with three pools number of cost driver units total pool 1 total

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Answer 1

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	Activity rate	Product A	Product B
Pool 1	(80,000/10,000) = 8	(8*4000) = 32,000	(8*6000)= 48,000
Pool 2	(60,000/50) = 1200	(1200*20) = 24,000	(1200*30) = 36,000
Pool 3	(40,000/200) = 200	(200*50) = 10,000	(200*150) = 30,000
Total		66,000	114,000

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Question 2: Allocating costs using ABC You have an ABC system with three pools number of...

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