Spice Gram produces hot sauce and has the following indirect costs: Indirect Costs ...

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Accounting

Spice Gram produces hot sauce and has the following indirect costs:
Indirect Costs
Indirect labor $ 355,000
Indirect materials $ 150,000
Product design $ 45,000
Equipment depreciation $ 135,000
Factory lease $ 120,000
Total $ 805,000
Spice Gram has identified the following activities for its activity-based costing system: Production, Quality Control, Patent Filing, Marketing, and Facility Support. Production is a unit-level cost, Quality Control is a batch-level cost, Patent Filing and Marketing are product-level costs, and Facility-level costs are aggregated in a facility-support pool.
Spice Gram has gathered data to estimate how indirect cost categories relate to activity cost pools as follows:
Resource Consumption by Activity
Production Quality Control Patent Filing Marketing Facility Support Total
Indirect labor 55%15%5%20%5%100%
Indirect materials 70%25%0%5%0%100%
Product Design 0%5%20%75%0%100%
Equipment Depreciation 40%0%0%0%60%100%
Factory Lease 0%0%0%0%100%100%
Use the template below to determine the total amount of indirect cost in each activity cost pool:

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