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    activity based costing

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    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

    © BrainMass Inc. brainmass.com June 3, 2020, 11:32 pm ad1c9bdddf
    https://brainmass.com/economics/personal-finance-savings/activity-based-costing-284356

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    Solution Summary

    This job assesses activity based costing.

    $2.19

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