Activity-Based Costing slack Corporation has the following predicted indirect costs and cost drivers for 2016...
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Activity-Based Costing slack Corporation has the following predicted indirect costs and cost drivers for 2016 for the gven activity cost pools: Fabrication Department $20000 30.000 70,000 Finishing Department Cost Driver Maintenance Materials handling Machine setups Inspections $10,000 Machine hours 15.000 Material mores 5,000 Machine setup 25,000 Inspectian hours $120,000 $55,000 The following actovity predictions were also made for the year Machine hours Material moves Machine setups Inspection hours Fabrication Department 10000 3,000 700 Finishing Department 5 000 1.500 50 1.000 it is assumed that the cost per unit of activty for a gven actiuity does not vary between departments Slacks president Charles Slack Iis trying to evaluate th product models, 2X300 and SL500. The company has been using a company-wide overhead rate based on machine hours but is considering switching to eith manager has provided the following data for the production of a batch of 100 units for each of these models: 2X300 SL500 Direct materials cosr $12000 $18.000
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