Indirect Labor Cost Driver Cost Total ActivityCost/driver

Scheduling and handling (50%) Production Sales Volume 14000 150 93.33
Set up machine (40%) Setup Time 11200 526 21.29
Maintenance (10%) Number of product 2800 4 700
Total 28000
Fringe benefits Direct Labor 20000 2000 10

Computer system
Prepare shipping document Production sales volume 8000 150 53.333333333
Maintain record Number of product 2000 4 500
Total 10000
Machinary Machine Hours 8000
Maintenace Machine Hours 4000
Energy Machine Hours 2000 10000 1.4
TOTAL
Total unit production

Direct Costs and Activity Cost DrBLUE BLACK RED

Production Sales Volume 50000 40000 9000
Unit selling price (dollar) 1.5 1.5 1.55
Materials/unit cost (dollar) 9.5 0.5 0.52
Direct labor hr/unit 0.02 0.02 0.02
Machine hour/unit 0.1 0.1 0.1
No of production runs 50 50 38
Setup time/run (hours) 4 1 6
Total setup time (hours) 200 50 228
Number of products 1 1 1
Direct labor 10000 8000 1800
Cost assigned to blue pen Cost assigned to black pen Cost assigned to red pen Cost Assigned to Purple Pen
4,666,667 3,733,333.3 840000 93333.3333333333
4,259 1,064.6 4854.8 4480
700 700 700 700

100000 80000 18000 2000

2,666,666.67 2133333.33333333 480000 53333.3333333333

500 500 500 500

7000 5600 1260 140

7,445,792
50,000
149

PURPLE TOTAL
1000 100,000
1.65
0.55
0.02 20000
0.1 10000
12 150
4
48 526
1 4
200