Duquesne Incorporated Recently Implemented an Activity-Based Costing System

question 13

Essay

Duquesne Incorporated recently implemented an activity-based costing system.Total results from all products manufactured in the current year are:
Duquesne manufactures sprinkler heads for commercial applications.Annual production and sales of one of its heads,is 2,300.The following relates to the most recent year.
Required:
1.Calculate the activity cost pool rates for each of the three activity cost pools listed.
2.Calculate the average cost of one sprinkler head.

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Definitions:

Richard Alm

An economic journalist and author known for co-authoring publications on economic issues, notably with economist William A. "Sandy" Darity.

Consumption

The use of goods and services by households, which is a primary component of GDP.

Workers

Individuals engaged in any form of employment for compensation.

Firm

A business organization or entity engaged in commercial, industrial, or professional activities, designed to provide goods or services for profit.