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Question

Fle Edit View History Bookmarks People Window Help ????10%D Wed 1:03 PM a@ O ezto.mheducation.com hm.tp E connect Addison Haas nstructions i help Question 3 of 18 084 points Acoma Co. has identfed one of its cost pools to be quality control and has assigned $55.062 to that pool Number of inspections has been chosen as the cost driver for this pook; Acoma performs 26,600 inspections annually Suppose Acoma manufactures two products that consume 7,980(Product 1) and 18,620 (Product 2) inspections each Assu 'mat Aorna manufacturers oriy the two pro ucts menon danney oonur e 100 percer tof anys aatty nspecto" much quality conteol cost will be assigned to each of Acoma's product ines (Round your inal answers to two decimal places) sra acti ity poporties, dem me hw Product 2 Diiculity: 1 Easy Leaming Objive: 04-0 sgret costs to products o services u 5 8 9 W E

Explanation / Answer

Total quality control cost = $55,062

Inspections required in product 1 = 7,980

Inspections required in product 2 = 18,620

Total inspections = 26,600

Hence, quality control cost allocable to product 1 = (55,062/26,600) x 7,980

= $16,519

Hence, quality control cost allocable to product 2 = (55,062/26,600) x 18,620

= $38,543

Quality control cost Product 1 16,519 Product 2 38,543