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activity based costing

Parts cut off:

Activity 1:

expected used of cost driver
(80,000 + 15,000 + 7,000)= 102,000 prints

Activity 2:

expected used of cost driver

prints: 80,000 components
prints and frame: 15,000 x 2 = 30,000 components
print, mat and frame: 7,000 x 3 = 21,000 components
total = 131,000 components

activity 3:

expected used of cost driver

Uframed prints: 100,000 print capacity
framed and/or matted prints: 25,000 print capacity (16,000 steel; 9,000 wood)

activity 4:
expected used of cost driver

print and frame: 16,000 x 2 = 32,000 components at capacity print, mat, and frame : 9,000 x 3 = 27,000 componenets at capacity
total= 59,000 componenets

summary of overhead costs and cost drivers

activity overhead cost

picking prints: $ 30,600

inventory selection and management: 91,700

website optimization: 25,800
103,200

framing and matting: 123,900

375,200

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Solution Summary

This job assesses activity based costing.

$2.19