identified data for a typical month
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An ABC team at Drug's 'R' US, a pharmaceutical company, identified these data for a typical month (Please see attachment)
Please disregard requirements in attachment instead please use the following requirements thank you:
You will be calculating unit costs for products A and B using both traditional and activity-based costing methodologies.
a. When developing your activity-based costing rates, be sure to show the activity/resource, cost, volume, and rate per unit of measure.
b. Using your activity based rates, apply actual activities of products A and B to determine total cost by product and unit costs. Separate the activity/resources by unit, batch, prod-uct, customer, and facility levels.
c. Determine unit costs by using traditional costing.
d. Compare the unit costs using activity-based costing and traditional costing approaches and analyze the reason for the differences.
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Solution Summary
The solution identifies data for a typical month for a pharmaceutical company.
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a. When developing your activity-based costing rates, be sure to show the activity/resource, cost, volume, and rate per unit of measure.
b. Using your activity based rates, apply actual activities of products A and B to determine total cost by product and unit costs. Separate the activity/resources by unit, batch, product, customer, and facility levels.
c. Determine unit costs by using traditional costing.
See excel file attached.
d. Compare the unit costs using activity-based costing and traditional costing approaches and analyze the reason for the differences.
There are differences between the ...
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