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Required information
M4-8 and M4-9
Acoma Co, has identified one of its cost pools to be quality control and has assigned $156,600 to that pool. Number of
inspections has been chosen as the cost driver for this pool; Acoma performs 32,500 inspections annually. Suppose
Acoma manufactures two products that consume 16,900 (Product 1) and 15,600 (Product 2) inspections each.
M4-8 (Algo) Assigning Costs Using Activity Rates (LO 4-4]
Using activity rates, determine the amount of quality control cost to be assigned to each of Acoma's product lines. (Do not round
intermediate calculations. Round your final answer to the nearest whole dollar.)
Quality Control
Costs
Product 1
Product 2