Duquesne Incorporated recently implemented an activity-based costing system. Total results from all products manufactured in the current year are:
Duquesne manufactures sprinkler heads for commercial applications. Annual production and sales of one of its heads, is 2,300. The following relates to the most recent year.
Required:
1. Calculate the activity cost pool rates for each of the three activity cost pools listed.
2. Calculate the average cost of one sprinkler head.

Question

Duquesne Incorporated recently implemented an activity-based costing system. Total results from all products manufactured in the current year are:
  Duquesne manufactures sprinkler heads for commercial applications. Annual production and sales of one of its heads, is 2,300. The following relates to the most recent year.
  Required:
1. Calculate the activity cost pool rates for each of the three activity cost pools listed.
2. Calculate the average cost of one sprinkler head.

Quizplus · Accepted Answer

The Answer of Duquesne Incorporated recently implemented an activity-based costing system. Total results from all products manufactured in the current year are:
  Duquesne manufactures sprinkler heads for commercial applications. Annual production and sales of one of its heads, is 2,300. The following relates to the most recent year.
  Required:
1. Calculate the activity cost pool rates for each of the three activity cost pools listed.
2. Calculate the average cost of one sprinkler head.

Duquesne Incorporated Recently Implemented an Activity-Based Costing System