Acoma Co. has identified one of its cost pools to be quality control and has assigned $58,473 to that pool. Number of inspections has been chosen as the cost driver for this pool; Acoma performs 26,700 inspections annually. Suppose Acoma manufactures two products that consume 10,146 (Product 1) and 16,554 (Product 2) inspections each.Assume that Acoma manufacturers only the two products mentioned and they consume 100 percent of the company’s quality inspections. Using activity proportions, determine how much quality control cost will be assigned to each of Acoma’s product lines.   I can not figure out the problem above.?

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter13: Emerging Topics In Managerial Accounting
Section: Chapter Questions
Problem 29BEB: Cassara, Inc., had the following quality costs for the years ended December 31, 20X1 and 20X2: At...
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Acoma Co. has identified one of its cost pools to be quality control and has assigned $58,473 to that pool. Number of inspections has been chosen as the cost driver for this pool; Acoma performs 26,700 inspections annually. Suppose Acoma manufactures two products that consume 10,146 (Product 1) and 16,554 (Product 2) inspections each.

Assume that Acoma manufacturers only the two products mentioned and they consume 100 percent of the company’s quality inspections. Using activity proportions, determine how much quality control cost will be assigned to each of Acoma’s product lines.

 

I can not figure out the problem above.?

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