Duquesne Incorporated Recently Implemented an Activity-Based Costing System

question 70

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.

---

Definitions:

Sole Proprietorship

A sole proprietorship is a business owned and operated by a single individual, where there is no legal separation between the owner and the business entity.

Limited Partnership

A form of partnership consisting of one or more general partners who manage the business and assume legal debts and obligations, and one or more limited partners who are liable only up to the amount they invest.

Limited Liability Partnership

is a partnership in which some or all partners have limited liabilities, protecting each partner's personal assets from debts and liabilities of the partnership.

Professional Partnership

A business organization formed by two or more professionals, such as lawyers or doctors, to provide services within their expertise.