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ABC Costing Quiz
ABC Costing Quiz
Indirect Labour
$20,000
Fringe Benefits
$16,000
Divided on direct and indirect labor; splitting in half
Computer Systems
$10,000
Machinery
$8,000
Used for supplying machine capacity for production
Maintenance
$4,000
Used for supplying machine capacity for production
Energy
$2,000
Used for supplying machine capacity for production
Indirect Fringe Division based on above indirect labor activities --> For Production Run
For Set up
For Admin. Work
Activities Cost Drivers Quantity Activity Cost
Production Run Production Runs 150 $22,000
Set - up Setup time 526 $11,200
Parts Administration Parts Administration 4 $4,800
Support Machine Hours 10000 $14,000
Direct Labour Fringe DLH 2000 $8,000
$4,000
$3,200
$800
Per Activity Rate