Question

Krypton Ltd.’s budgeted information relating to the manufacture of two of its products is presented below:...

Krypton Ltd.’s budgeted information relating to the manufacture of two of its products is presented below:

# of times driver used

Activity

Cost

Driver

Product A

Product B

Setup

$64563

# of batches

34

10

Engineering

$115377

# of engineering hours

6668

10233

Machine Maintenance

$80361

# of machine hours

7319

12666

Direct labour cost

$12/hour

$358659

$526086

Direct materials

$125579

$90949

What is the total cost of Product B using Activity Based Costing?

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