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$ 520,000.00/122= $ 4,262.29.
By having this data we can estimate the numbers of employees per each product
Basic ornaments 83.200,00 20
Large ornaments 93.600,00 22
Specialty ornaments 102.200,00 24
241.000,00 56
520.000,00 122
Given the plant administration costs related to the people employed we will consider the plant administration and the plant depreciation as a cost driver.
Customers number can not be taken as a reference cause of the non relevant data given by Exhibit 4
2. Calculate the ABC costs for each product on a per box basis
In order to calculate the ABC costs for each product we do have to evaluate the cost drivers and also he value each product is contributing to general turnover...
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