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PoseiDon Inc. (PDI) recently started operations to obtain a share of the growing golfing market....

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Accounting

PoseiDon Inc. (PDI) recently started operations to obtain a share of the growing golfing market. PDI manufactures two models of specialty drivers: the Thunderbolt model and the Earthquake model. The company was formed as a partnership by two professional engineers and a professional golfer, none of whom had any accounting experience. The business has been very successful, and to cope with the increased level of activity, the partners have hired a professional accountant as their controller. One of the first improvements the controller wants is an update of the costing system, changing from a single overhead application rate using direct labour-hours to activity-based costing. The controller has identified the following three activities as cost drivers, along with the related cost pools:

Model Number of Materials Requisitions Number of Product Inspections Number of Orders Shipped
Thunderbolt 320 100 132
Earthquake 480 205 59
Total costs in the cost pool $ 360,000 $ 51,850 $ 59,210

Required:

Using ABC, prepare a schedule that shows the allocation of the costs of each cost pool for each model.

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