ACCA

Activity Based Costing

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ACCA PM — Performance Management Practice Exam 1

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Q3Easy2 marks·ACCA PM — Performance Management Practice Exam 1

Section A ArtisanWood crafts bespoke furniture. The company is adopting Activity-Based Costing (ABC). The total quality inspection costs for the year are $120,000. The cost driver is the number of inspections. During the year, ArtisanWood expects to conduct 4,000 inspections in total. Product 'OakTable' requires 150 inspections. Calculate the total quality inspection cost allocated to the 'OakTable' product line for the year. (Enter the number only, without the $ sign).

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