Activity-Based Costing

Cooper’s Components uses an activity-based costing system for its product costing. For the last quarter, the following data relate to costs, output volume, and cost drivers:

Total Overhead Costs

$

Machinery (driven by machine hours)

172,000

Set-ups (driven by production runs)

66,000

Materials handling (driven by store orders)

45,000

Total overhead

283,000

Product

A

B

C

Production and sales

4,000 units

3,000 units

2,000 units

Number of production runs

12

5

8

Number of stores orders

12

6

4

per unit

per unit

per unit

Direct costs

$25

$35

$15

Machine hours

5

2

3

Direct labour hours

4

2

4

What is the total overhead cost assigned to each product?

What is the overhead cost per unit for each product?

What is the total cost per unit for each product?

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