Answer:
Activity based costing is a costing technique uin which cost are allocated to cost unit or cost centre based on the activity consumed by such cost centre or cost unit. cost are allocated based on the basis cost driver
cost ssigned to Standard Model
Set up cost = $300 *22 = $6,600
Assembly cost = $1,800 * 8 = 14,400
labour cost = $15 * 375 5,625
Total 13,665
Step-by-step explanation:
set up cost
cost per set up = $15,000/ 50 = $300
Assembly cost
cost per component = $36,000/20 = $1,800
Labour cost
labour cost per hour = $9,000/600 = $15