I know it's a lot of information for one problem and it's a lot to read but I've been attempting this problem since Friday and I'm not sure if I have it done correctly. I've already done the problem but the numbers seem way off to me. I am stuck on allocating costs based on the activity-base costing (ABC) method. If someone could point me in the right direction on how to solve this problem, I would greatly appreciate it. Here's some of the information for the assignment I've been trying Budgeted Information Trophies Forming Department Direct Materials $2.50 Direct Labor 3.00 Total 5.50 Assembly Department Direct Materials $0.50 Direct Labor 1.50 Total: 2.00 Packaging Department Direct Materials $0.75 Direct Labor 0.75 Total: 1.50 Overhead Costs for each department Forming Department Materials Handling $5,700 Quality inspection 6,300 Utilities 10,386 Total: 22,386 Assembly Department Materials Handling $9,200 Quality inspection 13,800 Utilities 10,960 Total: 33,960 Packaging Department Materials Handling $18,315 Quality inspection 14,985 Utilities 8,934 Total: 42,234 Trophy Batches per department Forming Department 116 Assembly Department 63 Packaging Department 80 5,200 Trophy Units The number I got when I tried the ABC method was a lot higher than the number I used the Simple Costing method, which is why I'm kind of skeptical of my work. thanks in advance for anyone that is able to help!
